Calculate the Total Amount of Money "Created" from a Deposit

question 22

Short Answer

Calculate the total amount of money "created" from a deposit of $10,000 as it moves through four cycles of deposit. Assume a reserve rate of 12 percent. (Round answer to nearest two decimal places.)

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Definitions:

Tenants in Common

A form of co-ownership where each tenant owns a separate and distinct share of the property, which can be sold or passed on independently.

Strategic Financial

Pertains to the managing of a corporation's finances with a long-term perspective, focusing on investment decisions, financial planning, and policies that affect the company's financial health and strategic goals.

Jointly Controlled Entity

An entity that is managed and operated under a joint control agreement by two or more parties.

Partnership

A legal form of business operation between two or more individuals who share management and profits.