messiah pyta:
What is the maximum amount of money that can be created in the banking system by this purchase?
If all banks are meeting their reserve requirement of 20 percent and the Fed buys $35,000,000 of securities from these banks, what is the maximum amount of money that can be created in the banking system by this purchase?
Maximum increase in money =
What is the maximum amount of money that can be created in the banking system by this purchase?
If all banks are meeting their reserve requirement of 20 percent and the Fed buys $35,000,000 of securities from these banks, what is the maximum amount of money that can be created in the banking system by this purchase?
Maximum increase in money =