Title: Assume there is no leakage from the banking system and that all commercial banks are loaned up. The Post by: NYC on Jan 12, 2016 Assume there is no leakage from the banking system and that all commercial banks are loaned up. The required reserve ratio is 5%. If the Fed buys $20 million worth of government securities from the public, the change in the money supply will be:
A) $400 million. B) $100 million. C) $20 million. D) $40 million. Title: Re: Assume there is no leakage from the banking system and that all commercial banks are loaned up. Post by: Jesslyn on Jan 16, 2016 Content hidden
Title: Re: Assume there is no leakage from the banking system and that all commercial banks are loaned up. The Post by: NYC on Jan 28, 2016 Perfect answer, thank you
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