Suppose again that checkable deposits started off at $300,000 in First Main Street Bank, the required reserve ratio is 10%, with no excess reserves and no cash leakage. First Main Street Bank takes the entire $3,000 in excess reserves that resulted from the open-market purchase by the Fed and creates a loan for Gilberto in a form of a new checkable deposit with a balance of $3,000. The money supply now is $_____.

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A:

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Q: None

A: Fed has purchased bonds worth $4,500 from First Main Street Bank.This purchase of bonds has created…

Q: None

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A:

Q: If a bank has $10,000,000 in deposits, excess reserves of $5,000,000, and required reserves of…

A: Given information Deposits with bank= $10,000,000  Excess reserves = $5,000,000 Required reserves of…

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Q: please answer in text form and in proper format answer with must explanation , calculation for each…

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A: Money supply: It is the sum total of money that is in circulation in an economy over a specified…

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Q: money supply will immediately:

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A: PLEASE FIND THE ANSWER BELOW.

Q: 8

A: The term ‘cash reserve (CRR) ratio’ is the share of total commercial bank’s deposits (or…