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(Solved): The Federal Reserve buys $40.00 million in Treasury securities. If the required reserve ratio is 30 ...
The Federal Reserve buys $40.00 million in Treasury securities. If the required reserve ratio is 30.00%, and all currency is deposited into the banking system. and banks hold excess reserves of 10%, then the maximum amount the money supply can increase is $ million. (Insert your answer in millions; if you think the answer is $30 million, just enter 30 . Round your answer to two decimal places.) Part 2 (0.5 pt) See Hint The Federal Reserve sells $44.00 million in Treasury securities. If the required reserve ratio is 30.00%, and all currency is deposited into the banking system, and banks hotd excess reserves of 10%, then the maximum amount the money supply can decrease is $ million. (Insert your answer in millions, and round your answer to two decimal places.)