Suppose the federal reserve wants to decrease the money supply by $400 billion. if the reserve requirement (rr) is 0.2, calculat

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il63 [147K]

2 years ago

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Suppose the federal reserve wants to decrease the money supply by $400 billion. if the reserve requirement (rr) is 0.2, calculat

e the change in reserves that the federal reserve must make

Business

1 answer:

svetlana [45] · Answer 1 · 2023-06-16T18:30:32+03:00

Two main modifications be made to guard the public, avoid bank bailouts, and expand banking protection and soundness.

<h3>What is the change in required reserves?</h3>

Increasing the (reserve requirement) ratios reduces the extent of deposits that can be supported with the aid of a given level of reserves and, in the absence of different actions, reduces the money stock and raises the price of credit.

<h3>What are the three dreams of the Federal Reserve?</h3>

It is the Federal Reserve's actions, as a central bank, to acquire three dreams distinct by using Congress: maximum employment, secure prices, and average long-term hobby rates in the United States.

Learn more about federal reserves here:

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