Mathematics
Mathematics, 21.04.2021 23:00, maddie02294

Assume Bank A recieved an initial deposit of $6,000, bank B recieved an initial deposit of $10,000, and bank C recieved an initial deposit of $20,000. 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 indefinetely for all three banks. A list of initial deposits, money multipliers, reserve rates, and total amounts deposited is shown below. Initial deposits: $6,000, $10,000, $20,000

Money multipliers: 50, 25, 20

Reserve rates: 5%, 2%, 4%

Total amount deposited: $100,000, $200,000, $150,000

Part 1: Choose the initial deposit, money multiplier, reserve rate, and total amount deposited that woud make sense for bank A. Justify your answer.

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Answers: 3

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Assume Bank A recieved an initial deposit of $6,000, bank B recieved an initial deposit of $10,000,...

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