If the Reserve Requirement Is 20 Percent and the Fed

question 293

Multiple Choice

If the reserve requirement is 20 percent and the Fed buys $10,000 worth of Treasury bonds,what is the change in the banks' total reserves?

• A)$2,000
• B)$10,000
• C)$20,000
• D)$8,000
• E)$100,000

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