Required reserves

Calculate what is the minimum amount of money that bank must hold in cash from your deposit 2750 Eur.
How much money is ideally created in the banking system from your deposit if the level of minimum reserve requirement is 2.15%?

Consider fractional reserve system, ie your bank can defer from your deposit reserve requirement (PMR), give the rest of the loan, which will again deposit money and thus flow system, etc. etc.
Today, PMR 2% in the euro area, U.S. 10% China 17%.

What is the cash multiplier, the ratio between the generated money and your deposit, from which it originated?

Correct answer:

Required reserves:  59.125
Total money created:  127907
Money multiplier:  46.5116

Step-by-step explanation:

r=27502.15100=59.125 Eur
c=27501002.15=127907 Eur

Did you find an error or inaccuracy? Feel free to write us. Thank you!


Tips to related online calculators
Need help to calculate sum, simplify or multiply fractions? Try our fraction calculator.
Our percentage calculator will help you quickly calculate various typical tasks with percentages.
Check out our ratio calculator.

You need to know the following knowledge to solve this word math problem:

Related math problems and questions:

  • Profitable bank deposit 2012
    eurocoins Calculate the value of what money lose creditor with a deposit € 9500 for 4 years if the entire duration is interest 2.6% p.a. and tax on interest is 19%. Annual inflation is 3.7% (Calculate what you will lose if you leave money lying idle at negative int
  • Bank deposit
    bank Ms Jana after the withdraw amount of 2,500 euros after year saving in bank. What was her deposit if the interest rate was 2.5% p.a..
  • Mr. Vojta
    penize Mr. Vojta put in the bank 35000 Kč. After a year bank, he credited with an interest rate of 2% of the deposit amount. How then will Mr. Vojta in the bank?
  • Mortgage
    hypo_real_estate Family XY wants to take the bank mortgage (loan for an apartment/house) in the amount of € 100,000. Bank for processing the mortgage charges a fee of 0.79% of the amount borrowed. How many euros is this fee?
  • The deposit
    money Deposit has been placed for one year at an annual rate of 4.5%. After the added interst amount rose to € 2,612.5. Determine initial deposit.
  • Deposit 3
    interest_money After a year, Martin had on bank account € 2028. What was the interest rate when the initial deposit was € 1879?
  • Millionaire
    money Mr. Smith have gone withdraw from bank saving interest € 1,500. How big was his initial deposit if the annual interest rate is 1.5%?
  • Mortage hypo loan
    hypo The Jonáš family decided to buy an older apartment, which cost EUR 30,000. They found EUR 17,000 and took the loan with the bank for the remaining amount. What interest did they receive if they repaid this amount for 15 years at EUR 120 per month?
  • Bank
    money Paul put 10000 in the bank for 6 years. Calculate how much you will have in the bank if he not pick earned interest or change deposit conditions. The annual interest rate is 3.5%, and the tax on interest is 10%.
  • Great Wall of China
    china_wall The Great Wall of China is long 8880 km. Historically valuable, however, is only 30% of its length. What amount of insurance pays the Peoples Republic of China a month for this monument if the insurance company charges $ 10 per year per kilometer of histo
  • Lunch for free
    Gastrolistky Gastro ticket are "free" and therefore they should be retained. This think many employees in Slovakia. Calculate how much money employee yearly earn if he get 201 gastro tickets of 2.8 € and you know that the company issuing gastro tickets get 4.9% fee of
  • Interst on savings
    ecb The bank offers 1.6% interest. How many euros have to insert at the beginning if we received € 15 on the interest?
  • Discounts on rail (ZSSK)
    preukazy_zssk The railway company ZSSK offers a discount of 15% (REGIONAL) for 5 Eur/year. Calculate the real discount rate as a percentage, where passengers will travel 19 Eur per week.
  • Profit per kilo
    jablone The trader sells apples at a profit of 20% per kilogram. Today, he decided to reduce the price of apples by 10%. How much profit does the trader have today?
  • Annual pension
    penize Calculate the amount of money generating an annual pension of EUR 1000, payable at the end of the year and for a period of 10 years, shall be inserted into the bank to account with an annual interest rate of 2%
  • A loan
    exp_growth A loan in the amount of $944 is charged simple interest at an annual rate of 8.1%. How much money is owed 14 months after the loan was made?
  • Bank account CZ
    mince We will deposit CZK 6,600 into the bank for 1 year with an interest rate of 2.5%. The interest tax is 15%. How many crowns will we receive after one year?