2006-08-19 09:39:01 · 5 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
$20.
Banks maintain deposits at the Federal Reserve system. When they need currency, they draw down on those deposits using the same amount.
2006-08-21 07:36:33 · answer #1 · answered by gray shadow 6 · 0⤊ 0⤋
Homework, huh?
I'll tell you how.
Find the prime rate.
Subtract the prime rate from 100.
This is called the "compliment" of the rate to 100.
Divide $20.00 by the compliment.
2006-08-19 09:51:04 · answer #2 · answered by ed 7 · 0⤊ 0⤋
if you are talking about to meet their day to day reserve requirements, it is more than $20.00. they pay interest on any money they borrow.
Banks do not eran money by getting from the government at a discount, they earn money by borrowing from everyday people like you and i, then scamming...oh sorry, lending it out a higher rate of interest than what they pay to borrow it in the first place.
2006-08-19 09:47:45 · answer #3 · answered by plasticrooster 2 · 0⤊ 1⤋
Perfect answer Plasticrooster!!
Perfect answer Edward I !!
This is the way Yahoo! Answer is supposed to be!
2006-08-19 11:17:53 · answer #4 · answered by Aloha Lady 2 · 0⤊ 0⤋
20.00
2006-08-19 09:50:28 · answer #5 · answered by LARCO 4 · 0⤊ 0⤋