The central bank buys $15,000 worth of bonds in the open market from Christopher, who
deposits the proceeds in his checking account at Carla Bank. The required reserve ratio is
5%.
(a) What is the amount by which Carla Bank's liabilities have changed?
(b) Calculate the change in required reserves for Carla Bank.
(c) What is the dollar value of the maximum amount of new loans Carla Bank can initially
make because of Christopher's deposit?
(d) Based on the central bank's open-market purchase of bonds, calculate the maximum
amount by which the money supply can change throughout the banking system.
(e) How will the change in the money supply in part (d) affect aggregate demand in the short
run? Explain.
Answers: 3
Business, 22.06.2019 11:00
You are attending college in the fall and you need to purchase a computer. you must finance the purchase because your parents will not purchase it for you, and you do not have the cash on hand to purchase it. in blank #1 determine which type of credit would you use to finance your purchase (installment, non-installment, or revolving credit). (2 points) in blank #2 defend your credit choice by explaining why your financing option is the best option for you. (2 points) in blank #3 explain why you selected that credit option over the other two options available. (2 points)
Answers: 3
Business, 23.06.2019 08:40
One principle of usability testing is that it permeates product development. what does that mean?
Answers: 3
Business, 23.06.2019 09:30
Which part in a cover letter do you write down skills and experience
Answers: 1
The central bank buys $15,000 worth of bonds in the open market from Christopher, who
deposits the...
Mathematics, 26.04.2021 20:50
Social Studies, 26.04.2021 20:50
Mathematics, 26.04.2021 20:50
Biology, 26.04.2021 20:50
Chemistry, 26.04.2021 20:50
Social Studies, 26.04.2021 20:50
Mathematics, 26.04.2021 20:50
Mathematics, 26.04.2021 20:50
History, 26.04.2021 20:50