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20 August, 12:34

If the Federal Reserve decreases the reserve rate from 4% to 2%, how does this affect the amount of money that would result because of fractional-reserve banking from an initial deposit into a bank of $55,000?

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  1. 20 August, 12:46
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    The light from the Sun heats a metal surface. This is an example of convection. reflection. conduction. radiation.
  2. 20 August, 12:56
    0
    1/0.04=25

    1/0.02=50

    50x-25x=25x

    X=55000

    25*55000=1,375,000

    So lowering the reserve ratio would increase the amount of money made.
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