Author Question: Suppose the Fed bought 150 million of U.S. securities from security dealers. The reserve requirement ... (Read 45 times)

vicotolentino · **on:** Jun 30, 2018

Suppose the Fed bought 150 million of U.S. securities from security dealers. The reserve requirement is 20 percent, and there are no initial excess reserves. A few weeks later, if the public's holdings of currency are constant and the banks have loaned all excess reserves, the money supply will increase by:
a. 150 million. b. 300 million.
c. 600 million. d. 750 million.

Question 2

Waste systems and highways are part of a nation's infrastructure.
a. True
b. False
Indicate whether the statement is true or false