Assume That the Currency-Deposit Ratio Is 0

question 93

Multiple Choice

Assume that the currency-deposit ratio is 0.2 and the reserve-deposit ratio is 0.1.The Federal Reserve carries out open-market operations,purchasing $1 million worth of bonds from banks.This action will increase the money supply by

• A)$1 million.
• B)$2 million.
• C)$3 million.
• D)$4 million.

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Definitions:

Desired Performance

The level or standard of work output or outcomes expected from an individual or group.

Actual Performance

The real, observed output or results achieved by an individual, group, or organization, as opposed to expected or theoretical outcomes.

Gantt Chart

A visual project management tool that displays tasks or events in relation to time, allowing for easy tracking of project schedules.

Research And Development

A functional area focusing on innovation and the creation of new products or processes through systematic investigation and experimentation.