Suppose the Fed purchases $100 million dollars worth of government bonds from a bond dealer who then deposits the proceeds at Bank INF.
(A)If the required reserve ratio is 10 percent,what is the maximum amount of loans that Bank INF can make?
(B)What is the maximum amount of deposits that the banking system as a whole can create? What is the maximum amount of loans that can be created?

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The Answer of Suppose the Fed purchases $100 million dollars worth of government bonds from a bond dealer who then deposits the proceeds at Bank INF.
(A)If the required reserve ratio is 10 percent,what is the maximum amount of loans that Bank INF can make?
(B)What is the maximum amount of deposits that the banking system as a whole can create? What is the maximum amount of loans that can be created?

Suppose the Fed Purchases $100 Million Dollars Worth of Government