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If the monetary base is $1,000 billion, checkable deposits are $2,000 billion, the required reserve ratio is 10%, and excess
When the Federal Reserve wants to raise interest rates after banks have accumulated large amounts of excess reserves (i.e., w
In the market for reserves, if the federal funds rate is between the interest rate paid on excess reserves and the discount r
Which of the following statements is FALSE? A) If the demand for reserves did not fluctuate, the Federal Reserve could pursue
All else the same, if an individual moves money from currency to a money market mutual funds, A) MI decreases and M2 stays th
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Answer #1

1) The answer is C-)$450 billion.

Since we have excess reserves = $500.

So bank will keep the minimum reserves of its excess reserves and lend out the remaining reserves.

= 500-10%= $450 billion.

2) for more answers , please upload it again.it against HOMEWORKLIB RULES.

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