tylerjoshonti
tylerjoshonti
24.11.2021 • 
Business

The Monetary Policy of Fiona is controlled by the country's central bank known as the Bank of Fiona. The local unit of currency is the Ruble. Aggregate banking statistics show that collectively the banks of Fiona hold $300 million of required reserves, $75 million of excess reserves, have issued $7,500 million of deposits, and hold $225 million of Fionan Treasury bonds. Fionans prefer to use only demand deposits and so all money is on deposit at the bank. Suppose that the Bank of Fiona changes the reserve requirement to 3 percent. Assuming that the banks still want to hold the same percentage of excess reserves what is the value of the money supply after banks adjust to the change in the reserve requirement

Solved
Show answers

Ask an AI advisor a question