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 Tenth Amendment gives the rights not expressly delegated to the federal government to the _____.
Find the length of the leg x . Enter the value rounded to one decimal place. x²=13²+6²
A simple context sentence with the word pluralistic
The project mark-up %​
Which objective would be best achieved through evaporation? Clicked it by accident, please help.
Please anyone help me answer this question. Am giving the brainliest
Why does Heidi like Frau Leib?
Find the quotient for 12 ÷ (-4). -3 -48 3
Use this paragraph: Layla drew a diagram of forces acting on the rock in Earth’s crust. She drew arrows pointing inwards, representing forces pressing on the ro
Which is the best definition of the term "difference"? A. Another name for a subtraction problem. B. The number you are subtracting. C. The answer to a subtract