Find out reserve-deposit ratio and currency-deposit ratio , Macroeconomics

1.  Assume the required reserve-deposit ratio is 12%, and the currency-deposit ratio is 38%. How much would money supply change if the Fed made open market purchases of $100 million?

2.  If bank deposits in the banking system are $1,800 billion, the required reserve-deposit ratio is 15%, and currency outstanding is $200 billion, what can the Fed do to increase the money supply by $250 million?

 

Posted Date: 2/21/2013 8:19:26 AM | Location : United States







Related Discussions:- Find out reserve-deposit ratio and currency-deposit ratio , Assignment Help, Ask Question on Find out reserve-deposit ratio and currency-deposit ratio , Get Answer, Expert's Help, Find out reserve-deposit ratio and currency-deposit ratio Discussions

Write discussion on Find out reserve-deposit ratio and currency-deposit ratio
Your posts are moderated
Related Questions
Define the Natural rate of unemployment Natural rate of unemployment is defined as the sum of rates of structural, frictional, and classical unemployment (excluding cyclical un

what are its effects on the Indian economy? Ans) It is largely positive. Globalization has brought a lot of jobs and large sums of investment to India. India's economy has been

We have been looking at just the Additional Marginal Opportunity Costs of our choices. What about the total cost? For example, we see and hear ads all the time about different cell

How can a country maintain equilibrium GDP with foreign trade?

briefly explain with keynesian consumption?

Kennesaw University Professor Frank A. Adams III and Auburn University Professors A. H. Barnett and David L. Kaser man recently estimated the effect of legalizing the sale of cadav

Perfect Competition. a.  What does it mean for a market to be perfectly competitive?  What are the three conditions of perfect competition.  What does it mean for firms to be 'p

Suppose price elasticity of demand for HP laptops is -2.3. If the price of an HP laptop is $1,000, what should the new price be to have an increase of 10% in quantity demanded for

c) Explain why perfectly competitive markets lead to an allocatively efficient allocation of resources in the long run

Suppose that a public park is visited by people living in five concentric zones around the park. Each zone has a population of 5000, and the total travel cost for a visit to the pa