Assume That the Reserve-Deposit Ratio Is 0

question 91

Multiple Choice

Assume that the reserve-deposit ratio is 0.2.The Federal Reserve carries out open-market operations,purchasing $1,000,000 worth of bonds from banks.This action increased the money supply by $2,600,000.What is the currency-deposit ratio?

• A)0)2
• B)0)3
• C)0)4
• D)0)5

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Definitions:

Leadership Theories

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