Question

Stephanie takes the $3,000 she has in her safe at home and deposits it into a checking account in a bank. The required reserve ratio is 20 percent. The maximum change in checkable deposits brought about by the banking system through new lending is _____.

Answer 1

The answer is $15000

Step-by-step explanation:

maximum change=1/r * change in R= 1/0.2 * $3,000 = $15000