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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20 August, 12:34

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Lilly Hoover · Answer 1

The light from the Sun heats a metal surface. This is an example of convection. reflection. conduction. radiation.

Francis Jefferson · Answer 2

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.