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A commercial bank buys a $30,000 government security from a securities dealer. The bank pays the dealer by increasing the dealer's checkable deposit balance by
A commercial bank buys a $30,000 government security from a securities dealer. The bank pays the dealer by increasing the dealer's checkable deposit balance by $30,000. The money supply has
- increased by $30,000.
- decreased by $30,000.
- not been affected.
- increased by $30,000 multiplied by the reserve ratio.
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International Trade
Authors: John McLaren
1st edition
0470408790, 978-0470408797
