2.2 If the commercial banks hold demand deposit of $150,000, the required reserve ratio should be __________ if the central bank would like to expand the money supply for another $150,000 at the maximum, given that the public's currency holdings are constant. 2.3 Assuming the required reserve ratio is 20%, and bank reserves set at $100 billion, then the maximum amount of deposits commercial banks can hold would be $_

Economics:
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ISBN:9781285859460
Author:BOYES, William
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Chapter13: Monetary Policy
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2.2 If the commercial banks hold demand deposit of $150,000, the required reserve ratio
should be if the central bank would like to expand the money supply for another
$150,000 at the maximum, given that the public's currency holdings are constant.
2.3 Assuming the required reserve ratio is 20%, and bank reserves set at $100 billion, then the
maximum amount of deposits commercial banks can hold would be $_
Transcribed Image Text:2.2 If the commercial banks hold demand deposit of $150,000, the required reserve ratio should be if the central bank would like to expand the money supply for another $150,000 at the maximum, given that the public's currency holdings are constant. 2.3 Assuming the required reserve ratio is 20%, and bank reserves set at $100 billion, then the maximum amount of deposits commercial banks can hold would be $_
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