Part 1 (1 point) The Federal Reserve buys $40.00 million in Treasury securities. If the required reserve ratio is 20.00%

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Part 1 1 Point The Federal Reserve Buys 40 00 Million In Treasury Securities If The Required Reserve Ratio Is 20 00 1 (113.14 KiB) Viewed 19 times

Part 1 (1 point) The Federal Reserve buys $40.00 million in Treasury securities. If the required reserve ratio is 20.00%, and all currency is deposited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can increase is $ million. (Insert your answer in millions; if you think the answer is $30 million, just enter 30. Round your answer to two decimal places.) Part 2 (1 point) The Federal Reserve sells $26.00 million in Treasury securities. If the required reserve ratio is 10.00%, and all currency is deposited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can decrease is $ million. (Insert your answer in millions, and round your answer to two decimal places.)