1. (2 Points). If the reserve ratio is 5 percent, then $500 of additional reserves can...

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1. (2 Points). If the reserve ratio is 5 percent, then $500 of additional reserves can create up to S 25 of new money. 2. (4 Points). The reserve ratio is 10 percent, banks do not hold excess reserves, and people hold only deposits and no currency. When the Fed sells $20 million worth of bonds to the public, bank reserves and the money (increases/decrease) by S (increases/decrease) by S supply eventually apter 9 (2 Points). The future value of $800 one year from today is percent. if the interest rate is 1. (2 Points). If the reserve ratio is 5 percent, then $500 of additional reserves can create up to S 25 of new money. 2. (4 Points). The reserve ratio is 10 percent, banks do not hold excess reserves, and people hold only deposits and no currency. When the Fed sells $20 million worth of bonds to the public, bank reserves and the money (increases/decrease) by S (increases/decrease) by S supply eventually apter 9 (2 Points). The future value of $800 one year from today is percent. if the interest rate is

Answer rating: 100% (QA)

Answer Q1 Reserve ratio 5 or 005 Additional reserves 500 Calculate the money multiplier ... View the full answer