Consider an open market purchase of 7 billionTL by Central Bank of Republic of Turkey (CBRT). Assuming required résérve Patio 10%, he which bank central bank buys securities does not want to hold excess reserves, and people does not wish to hold currency, Your answer: O The simple deposit expansion multiplieris 10. O M1 rises by 70billionTL. O The monetary base expands by 7billionTL. The increase in deposits in the banking system is 70billionTL.
Consider an open market purchase of 7 billionTL by Central Bank of Republic of Turkey (CBRT). Assuming required résérve Patio 10%, he which bank central bank buys securities does not want to hold excess reserves, and people does not wish to hold currency, Your answer: O The simple deposit expansion multiplieris 10. O M1 rises by 70billionTL. O The monetary base expands by 7billionTL. The increase in deposits in the banking system is 70billionTL.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![Consider an open market purchase of 7 billionTL by Central Bank of Republic of Turkey (CBRT). Assuming required reserve ratio 10%, the commercial bank from
which bank central bank buys securities does not want to hold excess reserves, and people does not wish to hold currency,
Your answer:
O The simple deposit expansion multiplieras 10.
O M1 rises by 70billionTL.
O The monetary base expands by 7billionTL.
O The increase in deposits in the banking system is 70billionTL.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa30cbeaa-fb8a-4cf3-97e9-766d67b3630a%2F553bb3d5-225a-483e-bb9b-c51d363e0382%2Fbnn0kym_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider an open market purchase of 7 billionTL by Central Bank of Republic of Turkey (CBRT). Assuming required reserve ratio 10%, the commercial bank from
which bank central bank buys securities does not want to hold excess reserves, and people does not wish to hold currency,
Your answer:
O The simple deposit expansion multiplieras 10.
O M1 rises by 70billionTL.
O The monetary base expands by 7billionTL.
O The increase in deposits in the banking system is 70billionTL.
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