Macroeconomic: Money, Banking and Monetary Policy
Question # 00075392
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Updated on: 06/12/2015 12:01 AM Due on: 06/11/2015
1. Would the maximumloan that a bank can make be different when receiving a discount loan from the Federal Reserve of $1 million versus receiving a checking account deposit of $1 million? Explain why or why not.
2.If the required reserve ratio is 100 percent, could the Federal Reserve still change the money supply with open marketoperations? Explain whether they could or could not.
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Rating:
5/