Question

instructions I help Question 1 (of 10) & Save & Exit Submit la Active Speak Hosts (1) & Gordon Len Presenters (0) • Participants (70 1. value: 1.00 points You did not receive full credit for this question in a previous attempt 123 abbymemann Adam 2 Alexa allison You decide to take $800 out of your piggy bank at home and place it in the bank. If the reserve requirement is 4 percent, by how much can your $800 increase the amount of money in the economy? angel Anoosheh Instructions: Round your answer to the nearest dollar. Arthur long $ 20000 Audrey Bren References eBook & Resources Presenter Chat Numeric Response brightpace Learning Objective: 14- 03 Explain the concept of fractional-reserve banking and the money multiplier Previous attempt OMGEW

Answer 1

Since, mone multiplier (m) = 1 Reservede requirement (RR) Here RR = 4.) MM- .. IMM = 25 So Hew money = initial money XMM Supply - 800 x 25 ī = $20000 =

Answer 2

multiplier=1/0.04=25

800*25-800=19200