Suppose the required reserve ratio were 10 of checkable

Reference no: EM13484152 , Length: 10

Suppose the required reserve ratio were 10% of checkable deposits, and the simple deposit multiplier applied. Using negatives to represent a decrease, if the Fed bought $250 of Treasury securities from a bank, the result would be a $___250___increase in reserves, a $___0___increase in excess reserves, and a $__2500__increase in checkable deposits. (Your answer should be for the entire banking system.) <>

Reference no: EM13484152

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