Question

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?

Answer 1

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

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