Hello: Please give a hand here, I got this question wrong. Thanks If the reserve ratio is

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Please give a hand here, I got this question wrong. Thanks

If the reserve ratio is 5 percent, then $600 of additional reserves can create up to

Selected Answer: my answer was b: 3000 of new money, I multiply (5) (600), but it's incorrect the answer is c. $12000

How?

a. $30 of new money.

b. $3,000 of new money.

c. $12,000 of new money.

d. None of the above is correct.

Related Book For answer-question

Business Ethics Case Studies And Selected Readings

ISBN: 9780357453865

9th Edition

Authors: Marianne M. Jennings

Posted Date: Jun 22, 2024 12:02 PM

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Business Ethics Case Studies And Selected Readings

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