Monday
March 30, 2015

Homework Help: economics

Posted by jill on Friday, May 24, 2013 at 11:15am.

Am i right, just checking as too many wrong homework assignments at the start of this semester have messed up my grades

If the required reserve ratio is 0.2, by how much could the money supply expand if the central bank purchased 2 billion worth of bonds?

2.0 billion x 0.20 = 400 million to be held in reserve, which means that the money supply increases by, 1.6 billion.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Economics - Who can raise the required reserve ratio? How does raising the ...
2nd Semester - 2nd Semester begins tomorrow and I won't be having art anymore I...
Economics - Effect on the money supply on two monetary policies: The Fed ...
Economics - The required reserve ratio equals required reserves divided by what...
Economics - Why is the money multiplier in the United States smaller than the ...
Macroeconomics - If it looks like a bank won't meet the Federal Reserve Bank's ...
Statistics - What I mean by a "running number" is that the average is always ...
econ - 1. A bank has $120 million in total assets, which are composed of ...
economics - where will i be able to find the % of bank reserve ratio required by...
econ. - If the reserve requirement is 20% and a bank doesn't have excess ...

Members