The Fed Makes an Open Market Operation Purchase of $200,000

question 327

Multiple Choice

The Fed makes an open market operation purchase of $200,000. The currency drain ratio is 33.33 percent and the desired reserve ratio is 10 percent. By how much does the quantity of money increase?

• A)$800,000
• B)$333,333
• C)$2,000,000
• D)$618,604
• E)$465,116

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Definitions:

Caffeine Intake

The amount of caffeine consumed by an individual, often measured in terms of coffee, tea, soft drinks, or energy drinks.

NREM III

The third stage of non-rapid eye movement sleep, characterized by deep sleep and the presence of delta waves in brain activity, important for physical recovery and memory consolidation.

Deep Sleep

A stage of sleep characterized by slow brain waves, lack of muscle activity, and reduced sensory perception, essential for restorative rest.

Confused

The state of being unable to think clearly or understand what is happening, often resulting in disorientation or difficulty in making decisions.