Business, 28.02.2020 19:16 amelvin41

Assume that a single commercial bank has no excess reserves and that the reserve ratio is 20 percent. If this bank sells a bond for $1,000 to a Federal Reserve Bank, it can expand its loans by a maximum of:
A. $1,000.
B. $2,000.
C. $800.
D. $5,000.

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Assume that a single commercial bank has no excess reserves and that the reserve ratio is 20 percent...

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