Multiple Choice
Assume that the reserve-deposit ratio is 0.4.The Federal Reserve carries out open-market operations,purchasing $1,000,000 worth of bonds from banks.This action increased the money supply by $1,750,000.What is the reserve-deposit ratio?
A) 0) 2
B) 0) 3
C) 0) 4
D) 0) 5
Correct Answer:
Verified
Correct Answer:
Verified
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