Multiple Choice
If the reserve requirement is 10 percent,which of the following pairs of changes would both allow a bank to lend out an additional $10,000?
A) the Fed buys a $10,000 bond from the bank or someone deposits $10,000 in the bank
B) the Fed buys a $10,000 bond from the bank or the Fed lends the bank $10,000
C) the Fed sells a $10,000 bond to the bank or someone deposits $10,000 in the bank
D) the Fed sells a $10,000 bond to the bank or the Fed lends the bank $10,000
Correct Answer:
Verified
Correct Answer:
Verified
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