Question
Suppose that banks hold reserves of 5 per cent against cheque account deposits. A)If the RBA sells $1 million of government securities, what is the
Suppose that banks hold reserves of 5 per cent against cheque account deposits.
A)If the RBA sells $1 million of government securities, what is the effect on the economy's reserves and money supply?
B)Suppose banks decide to increase their reserves to 10 per cent. Why might banks choose to do so? What effect does this have on the money supply?
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Capital In The Twenty-First Century
Authors: Thomas Piketty, Arthur Goldhammer
1st Edition
067443000X, 9780674430006
