Suppose the fed purchases 250 million worth of securities, Ask an Expert

Economics

Suppose the Fed purchases $250 million worth of securities from banks. If the currency/deposit ratio is 0.6 and The Fed requires banks to hold 12% of their deposits in reserves, how much money will be created through The Fed’s action if banks hold 2% of their deposits in excess reserves?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91236789

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