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by jhartfield on October 18th, 2009

jhartfield

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If a bank sells a $1,000 security to the Fed and the required reserve ratio is 20 percent, a. the bank has $1,000 in additional excess reserves, of which it can lend $800 b. the bank has $1,000 in additional excess reserves, all of which it can lend out

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You're reading If a bank sells a $1,000 security to the Fed and the required reserve ratio is 20 percent, a. the bank has $1,000 in additional excess reserves, of which it can lend $800 b. the bank has $1,000 in additional excess reserves, all of which it can lend out

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A bank lends out 1000 excess reserves to the public
If a bank sells a 1 000 security to the fed and the required reserve ratio is 20 percent
If each bank in the united states had to keep 100 percent of checkable deposits as reserves each 1 the fed injected into new reserves could increase the money supply by as much as
A the bank has 1 000 in additional excess reserves of which it can lend 800
If each bank in the united states had to keep 100 percent of checkable deposits as reserves each 1 the fed injected into new reserves could increase the money supply by as much as

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