If the reserve ratio is 14 and the central bankincreases the quantity of reserves in the bankingsystem by $120, the money supply increases bya. $90.b. $150.c. $160.d. $480.
If the reserve ratio is 14 and the central bankincreases the quantity of reserves in the bankingsystem by $120, the money supply increases bya. $90.b. $150.c. $160.d. $480.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Money And The Banking System
Section: Chapter Questions
Problem 7CQ
Related questions
Question
If the reserve ratio is 1
4 and the central bank
increases the quantity of reserves in the banking
system by $120, the money supply increases by
a. $90.
b. $150.
c. $160.
d. $480.
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