Title: Discover How Dr. Sharma's $5,000 Bonus Could Ripple Through the Economy Tagline: How Dr. Anya Sharma Could Potentially Boost the Economy (and Her Investments) with a $5,000 Windfall Problem: Dr. Anya Sharma, a 35-year-old physician, received a $5,000 bonus after exceeding performance goals. She's diligently paying down her $280,000 student loan debt while also maxing out her retirement accounts. Anya is unsure where to deposit the funds – a high-yield savings account, a debt repayment strategy, or a brokerage account. She's also curious about the broader economic impact of her decision. Solution: By using the Money Multiplier Calculator, Anya can understand how her $5,000 deposit could potentially expand the money supply. Knowing the reserve requirement (let's assume 10%), she can see the maximum amount her deposit could generate within the banking system. This understanding, coupled with insights from the Tax-Equivalent Yield Calculator, helps her choose the most beneficial financial path, considering her high tax bracket. Finally, understanding the potential economic impact of her deposit allows her to consider socially responsible investment options within her brokerage account. ROI: By depositing the $5,000 into a bank with a 10% reserve requirement, it could potentially expand the money supply by a maximum of $50,000 (5000 / 0.1). This, while not directly translating to immediate personal gains, highlights the interconnectedness of the financial system. Using the Tax-Equivalent Yield calculator helped Anya realize that the tax-equivalent yield of a municipal bond fund was 5.2% compared to her taxable savings account at 4.0%. She then invested the $5,000 in this fund, increasing her potential earnings by 1.2% annually, or $60 per year. Over the long term, this adds up! Description: Discover how a physician's financial decisions, influenced by fractional reserve banking, can have a ripple effect on the economy and her investment portfolio. Use our Money Multiplier Calculator to explore the potential impact of your deposits! Category: Client Service