Question: How would I go about solving this problem ? multiple answer. This question asks you to work through an open-market sale of $10,000 in securities
How would I go about solving this problem ?

multiple answer. This question asks you to work through an open-market sale of $10,000 in securities to Bank 1. The open-market operation then affects Bank 2, Bank 3, etc., y as in the examples in the lecture and slides. There is no currency and banks do not keep any excess reserves. The required reserve ratio is 5%. C] Bank 1's Loans will fall by $9,500. C] Bank 3's Reserves will rise by $475 C] After the 0M0 has worked its way through the banking system, the total amount of Deposits in the banking system will have fallen by $200,000. C] Bank 1's Loans will fall by $10,000. C] After the 0M0 has worked its way through the banking system, the total amount of Reserves in the banking system will have fallen by $200,000. C] Bank 3's Loans will fall by $9,025
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