open market purchase of $30 billion, resulting in a total increase in the money supply of $ 34.5 billion.

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19-12-2022
Business

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open market purchase of $30 billion, resulting in a total increase in the money supply of $ 34.5 billion.

Answer :

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Tutorconsortium435 Tutorconsortium435 · Answer 1 · 2022-12-27T22:14:05-05:00

The maximum and minimum increases in the money supply, respectively, are $200 million and $30 million, respectively, for a needed reserve ratio of 15%.

Why do you use the word "market"?

The market is defined as the total population of buyers and sellers in the region or area under examination. The topic might include Earth as well as a number of other countries, areas, states, and cities. The dynamics of supply and demand in the market determine the value, expense, and cost of the items sold.

What categories and marketplaces are there?

A market is a location where buyers and sellers get together to exchange goods and services. Markets can exist in the physical world (like a store) or online.

Briefing:

Increase in Deposits = Money Multiplier x Deposit

=(1/ Reserve Ratio) x Deposit

=(1/0.15) x $30 million

=$200 million

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