Question
W5 Q3 A commercial bank buys a $3,000 government security from a securities dealer. The bank pays the dealer by increasing the dealer's checkable deposit
W5 Q3
A commercial bank buys a $3,000 government security from a securities dealer. The bank pays the dealer by increasing the dealer's checkable deposit balance by $3,000. The money supply has
a)increased by $3,000
b)decreased by $3,000
c)not been effected
d)increased by $3,000 multiplied by the reserve ratio
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
