group of students contains the following: 18 who like math, 32 who like English,
ID: 2439775 • Letter: G
Question
group of students contains the following: 18 who like math, 32 who like English, 25 like language, 3 who like all 3 subjects, 8 who like both math and English, 16 who like both E group of students contains the following: 18 who like math, 32 who like English, 25 like language, 3 who like all 3 subjects, 8 who like both math and English, 16 who like both E group of students contains the following: 18 who like math, 32 who like English, 25 like language, 3 who like all 3 subjects, 8 who like both math and English, 16 who like both E if you deposit $50,000 in your bank (which has a 20% reserve requirement) and 6 other borrowers/depositors put money aside for eventual lending by financial institutions, how much new money is created?Explanation / Answer
Money Multiplier calculates how much “new” money is created when banks lend.Money
Multiplier = 1 / reserve ratio: (M = 1/R)
If reserve requirement = 20%
multiplier is 1/.20 = 5
Change in Money Supply = Multiplier X Initial Loan [initial loan=20%(50000)=40000]
=5*40000 = $200,000 new money created
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.