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12 February, 01:42

If the Federal Reserve decreases the reserve rate from 7% to 5%, how does this affect the amount of money that would result because of fractional-reserve banking from an initial deposit into a bank of $30,000?

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  1. 12 February, 01:49
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    1/0.07=14.29

    1/0.05=20

    Then

    20-14.29=5.71

    5.71*30000==171,300 increased
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