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
definition of cheap money

Sims (1980) introduced an exciting and ground-breaking new framework which would prove to be extremely insightful for macroeconomic analysis. This is known as vector autoregression

The events X and Y are mutually exclusive. Suppose P(X)=.05 and P(Y) =.02. What is the probability of either X or Y occurring? What is not probability of X nor Y happens?

Arrow up or down: An increase in the wage for high school graduates __________ the opportunity cost of college. A) arrow up B) Arrow down

I need help with Creating a table showing the CAGR of GDP by decade and over the entire period of time

Explain about a model and use of it in economics. A model is a simplified demonstration of a real situation which is used to better understand real-life circumstances. The

has determined that the price elasticity of demand for two customer segments (Coach and Business Class) is -1.35 and -2.50. Based on their expectations of profitability, Kashian r

Industrial Production and Agricultural Production  Industrial production and agricultural production are aggregate measures of sectoral outputs. It is a common practice to divi

If taxes and government expenditures were constant and did not vary with income, then: A. passive deficits would increase. B. structural deficits would increase. C. passive deficit

Macroeconomic performance The UK's future macroeconomic performance must be judged on how average living standards improve, inflation is kept under control, economy grows and