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Anettt [7]
3 years ago
9

Answer the question on the assumption that the legal reserve ratio is 20 percent. Suppose that the Fed sells $500 of government

securities to commercial banks (paid for out of commercial bank reserves) and buys $500 of securities from individuals, who deposit the cash in checking accounts. As a result of the given transactions, reserves in the banking system will _________.
a. rise by $500.
b. remain unchanged.
c. fall by $500
d. fall by $100.
Business
1 answer:
SVEN [57.7K]3 years ago
4 0
B.) Remain unchanged
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