Business, 25.11.2021 07:00 abbz13

1. The Federal Reserve buys $34.00 million in Treasury securities. If the required reserve ratio is 35.00%, and all currency is deposited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can increase is $million. 2. The Federal Reserve sells $34.00 million in Treasury securities. If the required reserve ratio is 10.00%, and all currency is deposited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can decrease is $million.
3. Assume that banks hold no excess reserves and that all currency is deposited into the banking system. If the required reserve ratio is 20.00%, and the Federal Reserve wants to decrease the money supply by $25.00 million, the Fed would need to make an open market sale of $million.

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1. The Federal Reserve buys $34.00 million in Treasury securities. If the required reserve ratio is...

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