A commercial bank buys a $5,000 government security from a securities dealer. The bank pays the dealer by increasing the dealer's checkable deposit balance by $5,000. The money supply has Multiple Choice increased by $5,000 multiplied by the reserve ratio. decreased by $5,000. not been affected. increased by $5,000.

A commercial bank buys a $5,000 government security from a securities dealer. The bank pays the dealer by increasing the dealer's checkable deposit balance by $5,000. The money supply has Multiple Choice increased by $5,000 multiplied by the reserve ratio. decreased by $5,000. not been affected. increased by $5,000.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter24: Money And The Federal Reserve System

Section: Chapter Questions

Problem 7SQ

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