How do I do #4? 4.2.3.1.Tonowing 3 items.Total ReservesLoansSecuritiesAnswer:AssetsAnswer:$20 billion.tto$175 billion$5 billionWhat is the reserve ratio if the banking system is fully-loaned up?Answer:LiabilitiesUse the reserve ratio from number 1 to respond to the remaining items.What is the value of the deposit multiplier?Checkable Deposits $200 billionWhat will total reserves be equal to if the Fed buys $2 billion in securities (bonds) from banks?What will excess reserves be equal to if the Fed buys $2 billion in securities (bonds) from banks?nd

Required reserve is the part of deposit that is kept by the commercial banks as per the policy.…

Answered: What will excess reserves be equal to…

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Economics

What will excess reserves be equal to if the Fed buys $2 billion in securities (bonds) from banks?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter14: Banking And The Money Supply

Section: Chapter Questions

Problem 2.3P

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Question

How do I do #4?

4.
2.
3.
1.
Tonowing 3 items.
Total Reserves
Loans
Securities
Answer:
Assets
Answer:
$20 billion.
tto
$175 billion
$5 billion
What is the reserve ratio if the banking system is fully-loaned up?
Answer:
Liabilities
Use the reserve ratio from number 1 to respond to the remaining items.
What is the value of the deposit multiplier?
Checkable Deposits $200 billion
What will total reserves be equal to if the Fed buys $2 billion in securities (bonds) from banks?
What will excess reserves be equal to if the Fed buys $2 billion in securities (bonds) from banks?
nd

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