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

GIVING BRAINLIEST! If triangle BCD were reflected over the y-axis, what would be the coordinates of the new triangle's vertices?
Can you solve these questions and explain them for me? Thank you
Work out the lengths of sides a and b. Give your answers to 1 decimal place. triangle a is a right angled triangle with a height | of 8cm base of 5cm and missin
How did Joe get free
“Who ( knows ) or ( know ) someone that does tattoos?” Which one is correct? Knows or know?
5b+a-2c when a=2,b=1&c=3
ΔABC will undergo two transformations to give ΔA′B′C′. Which pair of transformations will give a different image of ΔABC if the order of the transformations is
An ice cube absorbs 353 cal of energy from its surroundings. How many joules of energy is this?
People who carry out manual labor are called: administrative workers. labor workers. maestros. high-level managers. People who carry out manual labor are called
what is the answer for this question much appreciated if you attempt to help me