Author Question: An open market purchase immediately impacts the banking system balance sheet by a. increasing ... (Read 51 times)

LCritchfi · **on:** Jun 30, 2018

An open market purchase immediately impacts the banking system balance sheet by

a. increasing required reserves.
b. increasing deposits.
c. increasing the money multiplier.
d. increasing excess reserves.
e. none of the above.

Question 2

The money multiplier is the ratio of

a. bank reserves to bank deposits.
b. the change in the money supply to the change in the monetary base.
c. the money supply to the monetary base.
d. bank deposits to bank reserves.
e. both b and c.