The Fed Changes Reserve Requirements from 10 Percent to 7

question 40

Multiple Choice

The Fed changes reserve requirements from 10 percent to 7 percent,thereby creating $900 million in excess reserves. The total change in deposits (with no drains) would be

• A)$3,000 million.
• B)$15,625 million.
• C)$12,857 million.
• D)$3,795 million.
• E)None of these choices are correct.

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