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Select the correct answer. fiona deposits $2,000 into a savings account. if the fed requires a 20 percent reserve ratio, how much of fiona’s money can the bank lend? a. $400 b. $1,600 c. $2,000 d. $1,200

Respuesta :

The amount the the fed require = 20/100 x 2,000 = 400

The maximum sum Fiona's bank can loan is : $ 2,000 - $ 400 = $ 1,600

b. $1,600

The reserve ratio is the percentage of reserve liabilities that commercial banks are required to hold in reserve rather than lend out or invest. This standard is established by the nation's central bank, in this case the Federal Reserve in the United States. It is also referred to as the cash reserve ratio.

To learn more about Reserve Ratio from the given link.

https://brainly.com/question/13758092

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