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

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter13: The Federal Reserve System
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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?
Checkable deposits increase by 200 thousand
O Checkable deposits increase by 18 million
Checkable deposits increase by 20 million
O Checkable deposits decrease by 200 thousand
Transcribed Image Text: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? Checkable deposits increase by 200 thousand O Checkable deposits increase by 18 million Checkable deposits increase by 20 million O Checkable deposits decrease by 200 thousand
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