Let’s assume that the Federal Reserve bank requires the Oxnard County Bank to maintain 20% of deposits as reserves. The Oxnard County Bank decides not to hold excess reserves. If the Federal Reserve System buys $310 million in bonds from the Ventura County Bank which of the following will occur? Group of answer choices the money supply in the economy increases increase in the Ventura County Bank's loan assets of $96 million The Ventura County Bank's net worth increases by $120 million increase in the Ventura County Bank's bond assets by $96 million
Let’s assume that the Federal Reserve bank requires the Oxnard County Bank to maintain 20% of deposits as reserves. The Oxnard County Bank decides not to hold excess reserves. If the Federal Reserve System buys $310 million in bonds from the Ventura County Bank which of the following will occur? Group of answer choices the money supply in the economy increases increase in the Ventura County Bank's loan assets of $96 million The Ventura County Bank's net worth increases by $120 million increase in the Ventura County Bank's bond assets by $96 million
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter27: Money And Banking
Section: Chapter Questions
Problem 31P: Humongous Bank is the only bank in the economy. The people in this economy have 20 million in money,...
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Let’s assume that the Federal Reserve bank requires the Oxnard County Bank to maintain 20% of deposits as reserves. The Oxnard County Bank decides not to hold excess reserves . If the Federal Reserve System buys $310 million in bonds from the Ventura County Bank which of the following will occur?
Group of answer choices
the money supply in the economy increases
increase in the Ventura County Bank's loan assets of $96 million
The Ventura County Bank's net worth increases by $120 million
increase in the Ventura County Bank's bond assets by $96 million
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