If the federal reserve decreases the reserve rate from 10% to 8%, how does this affect the amount of money that would result because of fractional reserve banking from an initial deposit into the bank of $40,000

40,000 divided by 0.08= 500,000

40,000 divided by 0.10= 400,000

So...

500,000- 400,000= $100,000

Answer is:

$100,000

Increases by $100,000.

Hope this helps, have a good day. c;

it increases the amount by $100,000

Explanation:

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.