The money supply increases when the Fed Group of answer choices sells bonds. The increase will be larger, the smaller is the reserve ratio. sells bonds. The increase will be larger, the larger is the reserve ratio. buys bonds. The increase will be larger, the smaller is the reserve ratio. buys bonds. The increase will be larger, the larger is the reserve ratio.

In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeowner’s equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.