Ask Question
13 July, 21:23

The Fed sets a Reserve Requirement of 20%. A citizen takes $5000 from their cash holdings and places the money into a bank. Based on this action What is the initial amount the bank can lend out based on the deposit?

+5
Answers (1)
  1. 13 July, 22:13
    0
    20 percent times 5000 is equals to 1000 dollars. 5000 take away 1000 is equal to 4000 dollars that the initial amount the bank can lend out based on the deposit.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The Fed sets a Reserve Requirement of 20%. A citizen takes $5000 from their cash holdings and places the money into a bank. Based on this ...” in 📘 Advanced Placement (AP) if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers