Suppose a bank gets a new deposit of $100 cash and it has a 20% required reserve ratio. if
the bank lends the maximum amount of money allowed, then the checkable deposits
(including the original deposit) increase by:
a) $20
b) $100
c) $500
d) $1,000

C) $500

Explanation:

First we must determine the money multiplier = 1 / reserve ratio:

The bank's checkable deposits originally increase by $100, and since it will be able to lend all the money it can, $80, its checkable deposits will also increase by $80 x 5 (money multiplier) = $400.

So the total increase in the bank's checkable deposits = $100 (original deposit) + $400 (money created through loans) = $500

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answer: 11/12

step-by-step explanation: 4 1/4 and 3 1/3 is equivalent to 4 3/12 and 3 4/12. 4 3/12 - 3 4/12 =11/12