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The following information is for the entire banking system. Assume that banks are fully loaned up (banks hold only required reserves and make the maximum

The following information is for the entire banking system. Assume that banks are fully loaned up (banks hold only required reserves and make the maximum allowed amount of loans). Assume also that there is no currency leak. Required Reserves Ratio =16% Currency held outside of the banking system = 1,200b Deposits = 1,800b The Fed buys 320b in bonds from the public. The change in deposits equals Group of answer choices -2,000b 1,680b 2,000b None of these answers is correct -1,680b ECON 2 monetary policy

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