1. The required reserve ratio is 12 percent. The desired currency to deposit ratio and the desired...
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1. The required reserve ratio is 12 percent. The desired currency to deposit ratio and the desired excess reserve ratio are both zero. If there is an open market purchase of $100,000, what will happen to the total deposits of the banking system? To the total loans? To the total reserves?
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Related Book For 
Money Banking And Financial Markets An Economic Approach
ISBN: 9780395643952
1st Edition
Authors: Michael R. Baye, Dennis Jansen
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