almalizcuello2936 almalizcuello2936
  • 03-07-2021
  • Business
contestada

The Fed can manipulate the reserve ratio in order to influence the ability of commercial banks to do what

Respuesta :

ewomazinoade ewomazinoade
  • 06-07-2021

Answer:

loan out money

Explanation:

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. The lower the ratio, the higher the increase in money supply

If the required reserve ratio is 10% and $100 is deposited, reserves would be $10 and $90 would be lent out

Answer Link

Otras preguntas

The state of matter that keeps its shape and volume when it is placed in a different container
You are to give ampicillin 35 mg/kg to a child with a mass of 26 kg. If stock on hand is 250 mg/capsule, how many capsules should be given?
What is the value of x in the equation 0.2(x 1. 0.5x = –0.3(x – 4)?
kenneth has 22 math problems to do do for homework. he has 12 problems done. how many more problems does have left? if he completes 1 problem every minute, how
The concept of voting rights is based on
Keisha's parents want to save twenty thousand dollars in her college savings account over the next fifteen years. They have eight thousand dollars to use as an
What was the Warsaw ghetto
A yard fabric costs $12.99. How much will 2 feet cost?
How are the reasons for moving similar to or different from people in ancient history?
slove the equation 2x^2(6y^3) (2x^2 y)