Prior to 2008, the Fed did not pay interest on bank reserves. If banks charged 8% on loans and the required reserve ratio was 13%, then for every $1000 in deposits, the amount that banks lost in forgone interest (opportunity cost) because of reserve requirements is S (Round your response to the nearest two decimal place.)

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Q: Is the cash held by public in M2 calculated in the fed's reserve requirement?

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A: (Q) Suppose banks desire to hold no excess reserves and that the Fed has set a reserve requirement…

Q: Suppose the National Bank of Commerce has excess reserves of $8000 and outstanding checkable…

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Q: Suppose a bank has $100 million in checking account deposits with no excess reserves and the…

A: Required Reserve ration is the minimum amount which is necessary for the bank in order to fulfill…

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A: Fed Inject $100 million

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A: Fed uses open market operations in order to alter money supply in the economy.

Q: mo

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Q: Which statement(s) is/are TRUE? I. Increasing the reserve requirement would decrease the money…

A: Correct: I and III only

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