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OpenStudy (anonymous):
If the Federal Reserve decreases the reserve rate from 2.5% to 1.25%, how does this affect the amount of money that would result because of fractional-reserve banking from an initial deposit into a bank of $45,000?
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OpenStudy (tkhunny):
45000 is 2.5% of what? 45000 is 1.25% of what?
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