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Describe what the Fed should do to meet the reserve need in given question:

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Assume that checkable deposits are $500 billion, desired excess reserves are 1 percent of deposits, the required reserve ratio is 10 percent, and the amount of reserves is $50 billion.

What is the reserve need to maintain the existing reserve conditions?

Corporate Finance, Finance

  • Category:- Corporate Finance
  • Reference No.:- M91966810

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