Business, 20.03.2021 08:50 mimi19374

The desired reserve ratio is 10 percent of deposits, and the currency drain ratio is 1 percent of deposits. The central bank makes an open market purchase of $5 million of securities.
Calculate the change in the quantity of money and how much of the new money is currency and how much is bank deposits.

The quantity of money changes by $___ million.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 23:30, reddmeans6

Starting at age 30, you deposit $2000 a year into an ira account for retirement. treat the yearly deposits into the account as a continuous income stream. if money in the account earns 7%, compounded continuously, how much will be in the account 35 years later, when you retire at age 65? how much of the final amount is interest?

Answers: 2

continue

Business, 22.06.2019 08:40, adrian08022

Which of the following is not a characteristic of enterprise applications that cause challenges in implementation? a. they introduce "switching costs," making the firm dependent on the vendor. b. they cause integration difficulties as every vendor uses different data and processes. c. they are complex and time consuming to implement. d. they support "best practices" for each business process and function. e. they require sweeping changes to business processes to work with the software.

Answers: 1

continue

Business, 22.06.2019 09:30, byron17

Oliver's company is planning the launch of their hybrid cars. the company has included "never-before-seen" product benefits in the hybrid cars. which type of advertising should oliver's company use for the new cars?

Answers: 1

continue

Business, 22.06.2019 10:00, silviamgarcia

Scenario: you have advised the owner of bond's gym that the best thing to do would be to raise the price of a monthly membership. the owner wants to know what may happen once this price increase goes into effect. what will most likely occur after the price of a monthly membership increases? check all that apply. current members will pay more per month. the quantity demanded for memberships will decrease. the number of available memberships will increase. the owner will make more money. bond's gym will receive more membership applications.

Answers: 1

continue

You know the right answer?

The desired reserve ratio is 10 percent of deposits, and the currency drain ratio is 1 percent of de...