Business, 11.08.2021 01:00, 10mrodmg

Assume that banks lend out all their excess reserves. Currently, the total reserves that banks hold equal $32.8 billion. If the Federal Reserve decreases its reserve requirement from 8 percent to 5 percent, then there is potential for the whole banking system to raise the money supply by:

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Assume that banks lend out all their excess reserves. Currently, the total reserves that banks hold...