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Fiona deposits $2,000 into a savings account. If the Fed requires a 20 percent reserve ratio, how much of Fiona’s money can the bank lend?
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Fiona deposits $2,000 into a savings account. If the Fed requires a 20 percent reserve ratio, how much of Fiona’s money can the bank lend?

User Sick
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1 Answer

6 votes

Answer:

Step-by-step explanation:

The amount the the fed require =

20/100 x 2,000 = 400

The amount of money that Fiona's bank can lend is : $ 2,000 - $ 400

= $ 1,600

hopefully this helps you

User Hayat
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