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Multiple response question (more than one question could be true) Consider an open market purchase of 1 billion TL by Central Bank of Republic of

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Consider an open market purchase of 1 billion TL by Central Bank of Republic of Turkey (CBRT). Assuming required reserve ratio 8%, the commercial bank from which bank central bank buys securities does not want to hold excess reserves, and people does not wish to hold currency Yantnz: The decrease in deposits in the banking system is 12 TL The monetary base expands by 12.5month M1 contracts by 125 TL The simple deposit expansion multiplier is 125

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