Question

1)Suppose that Mariel deposits $100 in her local bank. If the Fed’s reserve requirement is 15 percent, how much can the bank loan out on the basis of Mariel’s deposit? What concept does this scenario illustrate?

2)How do banks facilitate saving and borrowing in the same way that money facilitates buying and selling?

Answer 1

Answer:

1.$85

Explanation:

1.as the Fed's reserved requirements were 15%