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Assume the reserve requirement is 10% If the Federal Open Market Committee buys a $10,000 bond from Bank A, Bank A's reserves decrease by $10,000

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Assume the reserve requirement is 10% If the Federal Open Market Committee buys a $10,000 bond from Bank A, Bank A's reserves decrease by $10,000 increase by $9,000 Cincrease by $1,000 increase by $10,000 Al.of these actions are performed by the Federal Reserve regional banks EXCEPT distributing coins and currency setting reserve requirements. regulating and supervising member banks. C providing a nationwide payments system. An individual bank can, at most, lend out all of its: C checkable deposits excess reserves. C reserves. C deposits. Assume the reserve requirement is 25% and the Federal Open Market Committee buys $4 million of U.S. government bonds from the public. As.aresult of this transaction, the supply of money is not directly affected but has the potential to be increased by a total of $12 million. Cdirectly increased by $4 million and has the potential to be increased by another $12 million. Cdirectly reduced by $4 million and has the potential to be reduced by another S12 million. Cdirectly increased by $4 million and has the potential to be increased by another S8 million. A bank has excess reserves of $5,000 and demand deposits of $40,000, the reserve requirement is 20%. If the reserve requirement is increased to 25%, the maximum amount of new loans this bank can make is $1,500 $2,000 C $2,500 C $3,000

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