What dollar amount of securities does the Federal Reserve Bank need to buy in order to raise
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Question:
What dollar amount of securities does the Federal Reserve Bank need to buy in order to raise total checkable deposits in the economy by $155,000? Assume the required reserve ratio is 8% and use the simply deposit multiplier.
a. $11,200
b. $12,400
c. $13,333
d. $14,450
Related Book For
Bank Management and Financial Services
ISBN: 978-0078034671
9th edition
Authors: Peter Rose, Sylvia Hudgins
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