cheesy3269 cheesy3269
  • 01-07-2017
  • Business
contestada

If the reserve ratio is 12.5 percent, then $1,000 of additional reserves can create up to

Respuesta :

meerkat18
meerkat18 meerkat18
  • 14-07-2017

It is required by the country’s central bank that a portion of the depositors’ balances must be in the form of hand as cash. This portion is called the reserve ratio.

Now if an additional reserve of $1,000 is allocated and this is only 12.5 percent, therefore this can create up to

capital = $1,000/0.125

capital = $8,000

Answer Link

Otras preguntas

Select the correct answer from each drop-down menu. a reaction proceeds with 2.72 moles of magnesium chlorate and 3.14 moles of sodium hydroxide. this is the eq
Which statement best describes how imagery is in this ad:
Find x. Round your answer to the nearest tenth of a degree. 36 X 19 +
Solve the equation by completing the square. Round to the nearest hundredth if necessary. x2 – 4x = 5
Why did it matter that tropical plant fossils were found in antarctica?
Social changes during adolescence include __________. a. relationships with friends and family b. friends becoming more important than family c. friendship circ
what is the value of 50 US dollar in philippine money?
Select the correct answer. during the korean war, which of these individuals wished to avoid a nuclear confrontation between the united states and the soviet un
What is the ratio of the length of DE to the length of BC? OA 1/4 OB.1/3 OC.2/5 OD.1/5
If a tank of gas contains 4 L of N O2 how many molecules are in it