Lucia withdraws $6,000 from her checking account to pay tuition this semester. Assume that the reserve requirement is 20% and that banks do not hold excess reserves. As a result of the withdrawal, required reserves: decrease by $6,000.

Question

09-12-2022
Business

contestada

Lucia withdraws $6,000 from her checking account to pay tuition this semester. Assume that the reserve requirement is 20% and that banks do not hold excess reserves. As a result of the withdrawal, required reserves: decrease by $6,000.

Respuesta :

Otras preguntas

during the 20th century, the general trend in the united states is to move closer to the ideas of adam smith about the role of government. chegg

.The club members pay a flat fee to have calendars printed. The club earns money by selling the individual calendars for a set price. The function f(x) = 10x +

all three components of the fire triangle are usually present whenever and wherever surgery is performed. for example, nitrous oxide is a source of which compon

for the tube closed on one end, how many measurements are you asked to repeat for each resonance position?

Transportation costs include car payments and costs for gasoline, repairs, and so on. What is their average monthly expenditures for transportation costs? Group

Position includes the distance (length) and direction (this sign +/-) of an object from a starting reference point. (Your hand will be the starting reference po

any down to send my n10des

A metaphor makes a comparison that is between two unlike things. that is between two similar things. that uses the word like. that uses the word as.

What depth of oil, specific gravity of 0.750, will produce a pressure of 26 psig?

The harvest was cornucopian as it was 45 percent greater than last year. If the yield was 140795 bushels, how many bushels were harvested last year

aamirmajeed5100 aamirmajeed5100 · Answer 1 · 2022-12-15T18:25:10+01:00

b) As a result of the withdrawal, required reserves: decrease by $1,200.

This is because the required reserve ratio is 20%. This means that for every $100 that is withdrawn from the account, the bank must keep $20 in reserves. Since Lucia withdrew $6,000, the bank must keep $1,200 in reserves ($6,000 x 20% = $1,200). Therefore, the required reserves decrease by $1,200.

Required reserves refer to the amount of money that banks must hold in reserve against deposits made by customers. Banks are required to hold a certain percentage of their deposits as reserves with their central bank. These reserves are used to meet customer withdrawals and to cover unexpected losses.

For more questions like Required reserves click the link below:

https://brainly.com/question/24153256

#SPJ4