The Economics of Money, Banking and Financial Markets 4th Edition by Frederic Mishkin

تمرين 15

Unless otherwise noted, the following assumptions are made in all questions: The required reserve ratio on checkable deposits iS₁0%, banks do not hold any excess reserves, and the public's holdings of currency do not change.
"The Fed can perfectly control the amount of reserves in the system." Is this statement true, false, or uncertain? Explain.