Assume that the required reserve ratio for the commercial banks is 25 percent. if the federal reserve banks buy $3 billion in government securities from the non-bank securities dealers, then as a result of this transaction, the lending ability of the commercial banking system will increase by:
a. $4.5 billion b. $9 billion c. $12 billion d. $15 billion

$12 billion

Explanation:

Given that,

Required reserve ratio (rr) =  25 percent

Fed purchases government securities = $3 billion

Money multiplier =

                            =

                            = 4

Lending ability of the commercial banking system will increase by:

= Money multiplier × Increase in Fed purchases

= 4 × $3 billion

= $12 billion

answer; (cash) is the best out of the above; good luck

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"