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Business, 30.05.2020 22:04 mariah9695

The required reserve ratio is 0.05. If the Federal Reserve buys $1,000,000 worth of bonds from a bond dealer who has her account at Bank XYZ above and she deposits the entire $1,000,000 into a checking account at Bank XYZ, what will be the new required and excess reserves for this bank (assume no new loans are made)? (Remember that required reserves are found by applying the required reserve ratio to the amount of total checkable deposits.)

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The required reserve ratio is 0.05. If the Federal Reserve buys $1,000,000 worth of bonds from a bon...
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