Assume the bank liquidates(sells)the $30 in government securities to the Fed. What is the immediate impact on the money supply(Use positive or negative to indicate increase or decrease)? Required Reserve Ratio=20% Assets Liabilities Total Reserves=$50 Demand Deposits=$100 Loans=$20 Bonds=$30

Assume the bank liquidates(sells)the $30 in government securities to the Fed. What is the immediate impact on the money supply(Use positive or negative to indicate increase or decrease)? Required Reserve Ratio=20% Assets Liabilities Total Reserves=$50 Demand Deposits=$100 Loans=$20 Bonds=$30

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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