Question

f the Federal Reserve decreases the reserve rate from 6% to 4%, how does this affect the amount of money that would result because of fractional-reserve banking from an initial deposit into a bank of $15,000?

Answer 1

well, we can work it for 6% and 4% if we cant recall any formulas for it

Answer 2

It decreases the amount by $250,000.
It increases the amount by $125,000.
It decreases the amount by $125,000.
It increases the amount by $250,000.