5)Answer the question on the assumption that the legal reserve ratio is 10 percent. Suppose that the Fed sells $1,000 of government securities to commercial banks (paid for out of commercial bank reserves) and buys $1,000 of securities from individuals, who deposit the cash in checking accounts.   As a result of the given transactions, excess reserves in the banking system  Group of answer choices   remain unchanged. rise by $100. fall by $100. rise by $1,000

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5)Answer the question on the assumption that the legal reserve ratio is 10 percent. Suppose that the Fed sells $1,000 of government securities to commercial banks (paid for out of commercial bank reserves) and buys $1,000 of securities from individuals, who deposit the cash in checking accounts.

 

As a result of the given transactions, excess reserves in the banking system 

Group of answer choices
 
remain unchanged.
rise by $100.
fall by $100.
rise by $1,000
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