- Reserves ; decrease
- 900
Change in checkable deposits = money multiplier * change in initial deposits
22500 = 1/0.04 * change in initial deposit
Change in initial deposits = 900
-0- If the Federal Reserve Bank sells $45 million worth of securities to a commercial bank,...
D3. If the Federal Reserve Bank sells $45 million worth of securities to a commercial bank, then the in the economy will _ by $45 million. reserves; increases reserves; decrease currency in circulation; descrease currency in circulation; increase
If the Federal Reserve Bank sells $45 million worth of securities to a commercial bank, then the ______ in the economy will ______ by $45 million. Group of answer choices A) reserves; increases B) reserves; decrease C) currency in circulation; descrease D) currency in circulation; increase
Using the simply money multiplier model, what quantity of securities must the Federal Reserve purchase to generate an increase in the size of checkable deposits by $22,500, assuming the required reserve ratio is 4%? 810 850 900 920 L > 5. During open market operations the Federal Reserve Bank purchases $120 million dollars worth of securities. The estimate, using the simply multiplier model is that this will raise checkable deposits in the economy by $750 million. In this, the required...
If the Federal Reserve Bank sells $130 million worth of securities to a commercial bank, then the reserves in the economy ____ by $130 million and the monetary base ____ by $130 million. Group of answer choices decrease; decreases decrease; increases increase; decreases increase; increases
Suppose that the Federal Reserve Bank buys $130 million worth of securities from the non- bank public, who then deposits the compensation in their checking account. As a result, will increase by $130 million and so, the monetary base will rise by currency in circulation; by more than $130 million currency in circulation, exactly $130 million reserves; by more than $130 million reserves; exactly $130 million
D1. Suppose that the Federal Reserve Bank buys $130 million worth of securities from the non- bank public, who then deposits the compensation in their checking account. As a result, will increase by $130 million and so, the monetary base will rise by_ currency in circulation; by more than $130 million currency in circulation; exactly $130 million reserves; by more than $130 million reserves; exactly $130 million
Suppose that the Federal Reserve Bank buys $130 million worth of securities from the non-bank public, who then deposits the compensation in their checking account. As a result, ______ will increase by $130 million and so, the monetary base will rise by ______. Group of answer choices A) currency in circulation; by more than $130 million B) currency in circulation; exactly $130 million C) reserves; by more than $130 million D) reserves; exactly $130 million
During open market operations the Federal Reserve Bank purchases $120 million dollars worth of securities. The estimate, using the simply multiplier model is that this will raise checkable deposits in the economy by $750 million. In this, the required reserve ratio is Group of answer choices A) 12% B) 16% C) 18% D) 20%
Using the simply money multiplier model, what quantity of securities must the Federal Reserve purchase to generate an increase in the size of checkable deposits by $22,500, assuming the required reserve ratio is 4%? Group of answer choices A) 810 B) 850 C) 900 D) 920
The Federal Reserve Bank purchases $X worth of securities and as a result, total checkable deposits in the economy increases by $3,500? Using a required reserve ratio of 6% and the simple multiplier formula, find X. Group of answer choices $175 $190 $210 $245