What is the maximum amount of money that can be created in the banking system by this purchase?
Posted July 28th, 2009 by admin 2 Comments »
messiah asked:
If all banks are meeting their reserve requirement of 20 percent and the Fed buys $35,000,000 of securities from these banks, what is the maximum amount of money that can be created in the banking system by this purchase?
Maximum increase in money =
If all banks are meeting their reserve requirement of 20 percent and the Fed buys $35,000,000 of securities from these banks, what is the maximum amount of money that can be created in the banking system by this purchase?
Maximum increase in money =