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
I''m trying to figure out what the effect would be on LM or IS curve, and additionally the interest rate and income if (a) the transactional demand for money increases, (b) the liq

Q. What do you mean by multiplier effect? Loans and deposits in banks give rise to a significant multiplier effect. We use a simple instance to explain this effect. Consider th

Consider the following Marginal Private Cost (MPC), Marginal Social Cost (MSC) and market demand curves. These curves relate to a market for a product, the production of which gene

Q. Describe the working of Commercial banks? Fact that currency inside commercial banks isn't money may strike you as odd though it is an important principle. 100 dollar bill i

Determinants of balance of payments: Broadly speaking, trend behaviour of merchandise exports and imports along with their  terms of  trade,  net invisible earnings and autono

Find the annual (yearly) real and nominal GDP numbers for Turkey from TCMB for the recent past. Use the EVDS system and TUIK data. Describe the source and definition of the data us

What is Purchasing power One problem in using exchange rate when comparing GDP per capita between countries is that is fluctuates quite a lot. A way of avoiding dependence on

Bob's Bee is a small boutique honey manufacturer in Texas.  Bob's neighbor is Jon's James.  The more honey Bob produces, the more jam Jon is able to produce; that is, there is

What are the contents in the market strikes back? a. Price controls • Price ceiling • Price floor b. Quantity controls quota c. Excise tax d. Inefficiency

What are the advantages of leaving resource allocation to price allocation? Ans) The 5 benefits are Neutral, Flexible, Freedom of choice, No administrative cost and lastly Dimin