Which volume of OMOS is required if banks expect to reduce their discount loans by $50 billion but desired changes of mo
Posted: Tue Jan 18, 2022 12:57 pm
Which volume of OMOS is required if banks expect to reduce their discount loans by $50 billion but desired changes of money supply is +$50 billion, so the Fed plans to reduce reserve ratio from 10% to 5% (current required reserves amount to $110 billion)? Use the concept of a money multiplier and currency ratio of 0.2, required reserves ratio of 0.07, excess reserves ratio of 0.03