Assume that the reserve-deposit ratio is 0.4.The Federal Reserve carries out open-market operations,purchasing $1,000,000 worth of bonds from banks.This action increased the money supply by $1,750,000.What is the reserve-deposit ratio?
A) 0) 2
B) 0) 3
C) 0) 4
D) 0) 5
Correct Answer:
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Q4: Vault cash is equal to $2 million,deposits
Q5: The money supply is $10 million,currency held
Q6: The currency-deposit ratio is determined by
A)banks.
B)the public.
C)the
Q7: Suppose there was a banking crisis.The money
Q8: Assume that the currency-deposit ratio is 0.2
Q10: Which of the following are depository institutions?
A)The
Q11: In a fractional reserve banking system with
Q12: Vault cash is equal to $2 million,deposits
Q13: Banks hold some deposits on reserve at
Q14: Suppose the Federal Reserve wanted to reduce
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