The Reserve Bank conducts an open market purchase of securities of $5,000. If the currency drain ratio is 0 per cent and the desired reserve ratio is 10 per cent, then the total increase in the quantity of money is
A) $4,000.
B) $20,000.
C) $10,000.
D) $50,000.
E) $5,000.
Correct Answer:
Verified
Q56: The two policy tools the Reserve Bank
Q57: When the Reserve Bank engages in open
Q58: The greater the currency drain ratio,
A) the
Q59: A currency drain occurs when the
A) non-bank
Q60: If Reserve Bank notes are $65 billion
Q62: If the currency drain ratio is 0.2
Q63: When the opportunity cost of holding money
Q64: If the desired reserve ratio is 10
Q65: The nominal interest rate is 12 per
Q66: The lower the nominal interest rate, the
A)
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