You withdraw $2,000 from your account. Your bank has a desired reserve ratio of 20%. This transaction, by itself, will directly reduce what?

so 2000x.20 = 400-2000=1600 so

my answer - the quantity of money by 1,600, thanks for checking my answer.

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- June 20th 2007, 08:38 PMkwtolleyReserve ratio
You withdraw $2,000 from your account. Your bank has a desired reserve ratio of 20%. This transaction, by itself, will directly reduce what?

so 2000x.20 = 400-2000=1600 so

my answer - the quantity of money by 1,600, thanks for checking my answer. - June 20th 2007, 10:30 PMJakeD