The Fed changes reserve requirements from 10 percent to 14 percent, thereby eliminating $750 million in excess reserves. The tot

Question

3 years ago

14

The Fed changes reserve requirements from 10 percent to 14 percent, thereby eliminating $750 million in excess reserves. The tot

al change in deposits (with no drains) would be (rounded):______
a. $3,000 million.
b. $15,625 million.
c. $12,857 million.
d. $3,795 million.
e. None of the options.

Business

1 answer:

MakcuM [25] · Answer 1 · 2022-02-26T11:10:11+03:00

MakcuM [25]3 years ago

5 0

Answer:

The answer is e. None of the options.

Explanation:

(1/0.14) × $750 million= $5357 million