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If the Federal Reserve Sells Bonds,the Required Reserve Ratio Is

Question 234

Multiple Choice

If the Federal Reserve sells bonds,the required reserve ratio is 0.25 and the money supply decreases by $10,000,how did the Fed accomplish this change?


A) The Fed sold $10,000 in bonds.
B) The Fed sold $7,500 in bonds.
C) The Fed sold $2,500 in bonds.
D) The Fed sold $7,518 in bonds.
E) The Fed sold $40,000 in bonds.

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