Reserves ; by more than $130 million
Initially the deposit will increase reserves then banks lend out of reserves and then money multiplier increases money supply by more than initial deposit.
Suppose that the Federal Reserve Bank buys $130 million worth of securities from the non- bank...
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
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
-0- 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 Question 4 1 pts 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 aso
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 purchases $120 million worth of securities in the open market, then the monetary base will Group of answer choices The monetary base will decrease by exactly $120 million The monetary base will increase by exactly $120 million The monetary base will increase by more than $120 million The monetary base will decrease by less than $120 million
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
If the Federal Reserve buys $40,000 worth of securities from the non-bank public, and the non-bank public then deposits the payment in their bank account, what happens next? a)R increases by $40,000 and the MB rises by $40,000 b)C and R both increase by $40,000, and MB increases by $80,000 c)C increases by $40,000 and the MB increases by $40,000 d)C decreases by $40,000 and the MB increases by $40,000
What will happen to the monetary base if the Federal Reserve Bank purchases $11 million in securities from the non-bank public? O The monetary base will decrease by exactly $11 million O The monetary base will increase by more than $11 million O The monetary base will decrease by more than $11 million O The monetary base will increase by exactly $11 million
Suppose that the Federal Reserve Bank buys $21,100 worth of securities and then, as a result, total size of checkable deposits in the economy increase by $422,000. In this case, the required reserve ratio must be o 2% O 5% 0 7.5% 0 9.5%