Assume that the reserve ratio is 10%. If the Fed buys 2 million dollars worth bonds from Chase Bank, what is the resulting change in checkable deposits? O Checkable deposits increase by 200 thousand Checkable deposits increase by 18 million Checkable deposits increase by 20 million O Checkable deposits decrease by 200 thousand
Assume that the reserve ratio is 10%. If the Fed buys 2 million dollars worth bonds from Chase Bank, what is the resulting change in checkable deposits? O Checkable deposits increase by 200 thousand Checkable deposits increase by 18 million Checkable deposits increase by 20 million O Checkable deposits decrease by 200 thousand
Chapter13: The Federal Reserve System
Section: Chapter Questions
Problem 10WNG
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