Author Question: In a simplified banking system subject to a 25 percent required reserve ratio, a 1,000 open-market ... (Read 58 times)

littleanan · **on:** Jun 30, 2018

In a simplified banking system subject to a 25 percent required reserve ratio, a 1,000 open-market purchase by the Fed would cause the money supply to:
a. increase by 1,000 b. decrease by 1,000.
c. decrease by 4,000 d. increase by 4,000.

Question 2

Which of the following makes short-term conditional low-interest loans to LDCs?
a. World Bank.
b. Agency for International Development (AID).
c. Agency for International Finance (AIF).
d. International Monetary Fund (IMF).