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What will excess reserves be equal to if the Fed buys $2 billion in securities (bonds) from banks?

What will excess reserves be equal to if the Fed buys $2 billion in securities (bonds) from banks?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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4. 2. 3. 1. Tonowing 3 items. Total Reserves Loans Securities Answer: Assets Answer: $20 billion. tto $175 billion $5 billion What is the reserve ratio if the banking system is fully-loaned up? Answer: Liabilities Use the reserve ratio from number 1 to respond to the remaining items. What is the value of the deposit multiplier? Checkable Deposits $200 billion What will total reserves be equal to if the Fed buys $2 billion in securities (bonds) from banks? What will excess reserves be equal to if the Fed buys $2 billion in securities (bonds) from banks? nd
Transcribed Image Text:4. 2. 3. 1. Tonowing 3 items. Total Reserves Loans Securities Answer: Assets Answer: $20 billion. tto $175 billion $5 billion What is the reserve ratio if the banking system is fully-loaned up? Answer: Liabilities Use the reserve ratio from number 1 to respond to the remaining items. What is the value of the deposit multiplier? Checkable Deposits $200 billion What will total reserves be equal to if the Fed buys $2 billion in securities (bonds) from banks? What will excess reserves be equal to if the Fed buys $2 billion in securities (bonds) from banks? nd
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