Sign In Sign Up Ask an AI advisor
edgartorres5123
edgartorres5123
02.10.2020 • 
Mathematics

3. Assume Bank A received an initial deposit of $6000, Bank B received an initial deposit of $10,000, and Bank C received an initial deposit of $2000. Each kept a percentage of the
money deposited in reserve based on the reserve rate and loaned out the rest, and the
amount each loaned out was eventually all deposited back into the bank. This cycle
continued indefinitely for all three banks. A list of initial deposits, money multipliers, reserve
rates, and total amounts deposited is shown below.(6 points: Part 1 - 2 points; Part II - 2
points; Part III - 2 points)Initial Deposits: $6000; $10,000; $2000Money Multipliers: 50, 25,
20Reserve Rates: 5%; 2%; 4% Total Amount Deposited: $100,000; $200,000; $150,000
Part III: Choose the initial deposit, money multiplier, reserve rate, and total amount deposited
that would make sense for Bank C. Justify your answer.

Solved
Show answers

Ask an AI advisor a question

I want advice