Assume that the Federal Reserve injects $84 billion into the financial system. I
ID: 2631596 • Letter: A
Question
Assume that the Federal Reserve injects $84 billion into the financial system. If the money supply increases by a maximum of $540 billion, what must the reserve requirement be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Assume that the Federal Reserve injects $84 billion into the financial system. If the money supply increases by a maximum of $540 billion, what must the reserve requirement be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Explanation / Answer
Reserve requirement = 84 * 100 / 540 = 15.56%