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rykibloom
 2 years ago
If the Federal Reserve decreases the reserve rate from 6% to 4%, how does this affect the amount of money that would result because of fractionalreserve banking from an initial deposit into a bank of $15,000?
A. It decreases the amount by $250,000.
B. It increases the amount by $125,000.
C. It decreases the amount by $125,000.
D. It increases the amount by $250,000.
rykibloom
 2 years ago
If the Federal Reserve decreases the reserve rate from 6% to 4%, how does this affect the amount of money that would result because of fractionalreserve banking from an initial deposit into a bank of $15,000? A. It decreases the amount by $250,000. B. It increases the amount by $125,000. C. It decreases the amount by $125,000. D. It increases the amount by $250,000.

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