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LUCKY_DIMON [66]
1 year ago
9

Suppose the required reserve ratio is 8% and the Fed purchases $10 million worth of Treasury bills from Wells Fargo. What's the

maximum possible increase of deposits in the banking system
Business
1 answer:
ahrayia [7]1 year ago
7 0

The answer is $100 million.

The reserve ratio is the percentage of a commercial bank's deposits that it must retain in cash as a reserve in case of large client withdrawals, as determined by the central bank.

The reserve ratio is a significant monetary policy instrument used by the Federal Reserve in the United States to boost or decrease the economy's money supply.

Banks require an RRR of 8% for demand deposits, not for funds received through the selling of treasury bills to the FED, hence Wells Fargo will be free to raise its loans by $100 million.

To know more about reserve ratio click here:

brainly.com/question/13758092

#SPJ4

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Alex17521 [72]

Answer:

From a personal experience they're a lot of moments in my life that led up to my decision to choose my career. From being constantly told that I was really good at something and that I was made for this certain career path, and just influences from others who are in the same work I am in and how good they were at their job and inspiring me to be just like them. All of those together helped influence me to choose the career that I am now working hard everyday to make sure I achieve success in.

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3 0
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You are expected to do a presentation of your business plan to a group of potential investors. Explain how you would respond to
UNO [17]
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3 years ago
Watson Company has monthly fixed costs of $80,000 and a 50% contribution margin ratio. If the company has set a target monthly i
Anastaziya [24]

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= 94700 / 0.5

= 189,400

7 0
3 years ago
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Liono4ka [1.6K]

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B) leading

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5 0
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