Total transactions deposits in the system are 100 billion., Ask an Expert

Economics

Suppose that the banking system is initially "loaned up" and all banks have a 30% required reserve ratio. Total transactions deposits in the system are $100 billion. If the Federal Reserve wishes the money supply to increase by an additional $20 billion, the Federal Reserve could:

Answer Reduce the require ratio to 25%

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9446171

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