Through its open market operations, the Federal Reserve recently increased deposits at financial institutions by $90 billion.

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Through its open market operations, the Federal Reserve recently increased deposits at financial institutions by $90 billion. If the reserve requirement for all deposits is 8 percent, what is the maximum effect that the Fed’s actions can have on total deposits?

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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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