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Mathematics, 17.12.2019 21:31 zianebonankenotdbev
If the federal reserve decreases the reserve rate from 4% to 2%, how does this affect the amount of money that would result because of fractional-reserve banking from an initial deposit into a bank of $55,000?
a. it increases the amount by $1,375,000.
b. it decreases the amount by $2,750,000.
c. it decreases the amount by $1,375,000.
d. it increases the amount by $2,750,000.
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