The Fed conducts an open market operation and increases a bank's excess reserves by $2,000.Explain the first five rounds of the money creation process if the desired reserve ratio is 25 percent and if people keep no currency outside of the banking system.

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The Answer of The Fed conducts an open market operation and increases a bank's excess reserves by $2,000.Explain the first five rounds of the money creation process if the desired reserve ratio is 25 percent and if people keep no currency outside of the banking system.

The Fed Conducts an Open Market Operation and Increases a Bank's