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lidiya [134]
3 years ago
14

Suppose the current reserve ratio is 25% and the level of checkable deposits represents total reserves. If the Federal Reserve l

owered the reserve ratio to 20%, excess reserves are now _______ and the money multiplier is ____.
Business
1 answer:
pashok25 [27]3 years ago
6 0

Answer:

Answer is $1,365.3 billion, 5.

Refer below.

Explanation:

Suppose the current reserve ratio is 25% and the level of checkable deposits represents total reserves. If the Federal Reserve lowered the reserve ratio to 20%, excess reserves are now $1,365.3 billion and the money multiplier is 5.

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