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

The difference of three times a number and 8 is one more than twice the number.
a cone has a circular base radius of 24cm the height is 30cm what is the volume of the cone?​
In what way was the ""dignity of labor"" a central issue at Lowell
There are approximately 400 million trees currently growing in the Amazon Rainforest, which covers approximately 5.5 million square kilometers. The rainforest i
I cut a piece of rope into four segments.Segment 1= 0.75 cmSegment 2= 2.278Segment 3= 6.11Segment 4= 6.72Find the following:i) Sum of all segmentsii) Sum of fir
The diagonal of a square is x units. What is the area of the square in terms of x? COS BOSE o {x? square units x2 square units o o 2x square units 3x square uni
What is 1/10 of 3.0 Can someone answer this
Editorials and _______________ are two examples of persuasive writing. A) instructions B) recipes C) biographies D) advertisements
What does article 4 of the constitution do.
What is the main function of cellulose in plants? Cant pick between B and C