If the reserve requirement is 7%, and a Fed purchase of $40 million worth of Treasury bonds

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If the reserve requirement is 7%, and a Fed purchase of $40 million worth of Treasury bonds increases the money supply by about $333.33 million, what is the percentage of checking deposits that banks are holding as excess reserves?

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Business A Changing World

ISBN: 978-1259179396

10th edition

Authors: O. C. Ferrell, Geoffrey Hirt, Linda Ferrell

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Posted Date: Dec 30, 2023 08:18 AM

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If the reserve requirement is 7%, and a Fed purchase of $40 million worth of Treasury bonds

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