Ask Question
14 October, 15:01

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?

+3
Answers (1)
  1. 14 October, 18:59
    0
    1/0.07=14.29

    1/0.05=20

    Then

    20-14.29=5.71

    5.71*30000==171,300 increased
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “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 ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers