Multiple Choice
Suppose the reserve ratio is 20% for all banks. If the Fed increases bank reserves by $200, then the money supply will:
A) decrease by $400.
B) increase by $400.
C) decrease by $1,000.
D) increase by $1,000.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q3: The Fed loaned money to J.P.Morgan and
Q79: Under fractional reserve banking, banks:<br>A) hold all
Q81: Use the following to answer questions:
Q82: Use the following to answer questions:
Q126: The money multiplier is greater than 1
Q131: The discount rate is the:<br>A) interest rate
Q145: Tyler owes $100,000,but he owns Mexican Amati
Q186: The possibility that the failure of one
Q197: As a result of an increase in
Q248: Which tool can the Federal Reserve use