if-a-bank-receives-a-deposit-of-800-and-the-reserve-ratio-is-25-how-much-money-w

Question

If a bank receives a deposit of $800 and the reserve ratio is 25%, how much money will be in circulation after two rounds of lending?

Accepted Answer

$1,280

Answer

$800

Answer

$1,600

Answer

$2,000

If a bank receives a deposit of \$800 and the reserve ratio is 25%, how much money will be in circulation after two rounds of lending?