If the reserve ratio was 20% and someone deposited an additional $8,000, what would be the...

Question

Question

Answer 1

Answer #1

E) $ 40000

Given reserve ratio = 20%

Additional amount deposited= $ 8000

Maximum increases in total deposit=

Additional amount deposited÷ Reserve ratio

= $ 8000÷ 0.20

= $ 40000

Answer 2

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