If Checking Deposits Increase by $6,000 After All Rounds of the Money-Creation

question 47

Multiple Choice

If checking deposits increase by $6,000 after all rounds of the money-creation process when the Fed buys $1,200 worth of U.S.government securities,the maximum value of the required reserve ratio is

• A)5
• B)0.75
• C)0.2
• D)1.2
• E)1.0

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