Suppose the Fed Sells $10 Million in Government Securities to a Commercial

question 131

Multiple Choice

Suppose the Fed sells $10 million in government securities to a commercial bank.If the required reserve ratio is 0.2,what is the maximum amount by which checkable deposits in the banking system can change?

• A)+$10,000,000
• B)−$10,000,000
• C)+$50,000,000
• D)−$50,000,000
• E)+$20,000,000

---

Definitions:

Sexual Abuse

Unwanted sexual activity, with perpetrators using force, making threats, or taking advantage of victims not able to give consent.

Children

Individuals who are younger than the age of puberty or not yet of legal adult age.

Female Genital Mutilation

A practice involving the partial or total removal of the external female genitalia for non-medical reasons.

African Cultures

The diverse traditions, languages, arts, and customs of the people living in the African continent, reflecting a rich variety of social organizations and belief systems.