ARE YOU GOOD W/ ECONOMICS? The Ironstone National Bank's required reserve amount is 5%.?The Ironstone National Bank's required reserve amount is 5%. If Ramesh deposits $2500, the Ironstone will be_____? Please help. Thanks in advance. |
ARE YOU GOOD W/ ECONOMICS? The Ironstone National Bank's required reserve amount is 5%.?The Ironstone National Bank's required reserve amount is 5%. If Ramesh deposits $2500, the Ironstone will be_____? Please help. Thanks in advance. |
Am I good with Economics? Yes, I am a genius with Economics.
"The Ironstone National Bank's required reserve amount is 5%. If Ramesh deposits $2500, the Ironstone will be_____?" The blank space should be filled with the words: "happy to take his money, pay him next to nothing in interest, lend most of the money out at extortionate interest rates to someone who wants to buy an overpriced house, pay huge bonuses to their senior managers, throw their hands up in horror when the money isn't repaid, effectively go bust and demand that the taxpayer picks up the tab."
(Unless of course, the Ironside is a central bank, in which case they will turn a blind eye to what's going on with Ramesh's money, pay their managers huge bonuses and then advise the government it has no choice but to allow the taxpayer to bail everyone out.)