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Assume that the demand for required plus excess reserves is $50 billion, the level of discount borrowing is $100 million, and the actual level of nonborrowed reserves is $49 billion.

What is the reserve need if the existing degree of pressure on reserve positions is to be maintained?

What will happen if the Fed supplies fewer reserves than the reserve need?

Corporate Finance, Finance

  • Category:- Corporate Finance
  • Reference No.:- M91966838

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