If the Federal Reserve conducts a $10 million open-market sale and the reserve requirement is 20%, what is the maximum change in the money supply

How much will the money supply increase if excess reserves increase by $40 million and the reserve requirement is 21 percent?   Multiple Choice   $4.76 million   $190.48 million   $1.90 million   $840.00 million

Suppose that you find $100 dollars and you deposit it into your bank account as a checkable deposit. If the require reserve ratio is 20%, how much will the money supply increase due to the initial $100 deposit in the banking system.

Suppose that the central bank has increased the money supply such that there is an additional $989699 in excess reserves. If the reserve ratio is 4.0 percent, what is the maximum increase in money supply? Round your answer to the nearest dollar.

Suppose the money supply is currently $500 billion and the Fed wishes to increases it by $100 billion. Given a required reserve ration of 0.25, what should it do? If it decided to change the money supply by changing the required reserve ratio, what change should it make? Why may the Fed be reluctant to change the reserve requirement?

Suppose you win on a scratch-off lottery ticket and you decide to put all of your $3,500 winnings in the bank. The reserve requirement is 5%. What is the maximum possible increase in the money supply as a result of your bank deposit? maximum increase: $ Which events could cause the increase in the money supply to be less than its potential? Banks choose to loan out all excess reserves. Some loan recipients choose to hold some cash instead of depositing all of it in banks. Banks decide to keep some excess reserves on hand. All money loaned out is deposited back into the banking system.

Assuming all else equal, the demand curve for reserves in an economy shifts to the left. Which of the following could explain this shift?  Rapid expansion of the economy  A decrease in the federal funds rate  An increase in the federal funds rate  Rapid contraction of the economy.

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What happens to the money supply if the Fed decreases the reserve requirement? Group of answer choices It increases It decreases There is no change It doubles

Use the supply and demand analysis of the market for reserves to visually illustrate and explain how the following scenarios may arise in equilibrium.  An increase in the reserve interest rate increases the interbank rate and makes it equal to the discount rate.