The Federal Reserve buys $20.00 million in Treasury securities. If the required reserve ratio is 25.00%, and all currency is deposited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can increase is $ million. (Insert your answer in millions; If you think the answer is $30 million, just enter 30. Round your answer to two decimal places.) The Federal Reserve sells $10.00 million in Treasury securities. If the required reserve ratio is 25.00 %, and all currency is deposited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can decrease is $ million. (Insert your answer in millions, and round your answer to two decimal places)
The Federal Reserve buys $20.00 million in Treasury securities. If the required reserve ratio is 25.00%, and all currency is deposited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can increase is $ million. (Insert your answer in millions; If you think the answer is $30 million, just enter 30. Round your answer to two decimal places.) The Federal Reserve sells $10.00 million in Treasury securities. If the required reserve ratio is 25.00 %, and all currency is deposited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can decrease is $ million. (Insert your answer in millions, and round your answer to two decimal places)
Chapter13: Monetary Policy
Section: Chapter Questions
Problem 8E
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