Suppose the Federal Reserve sets the reserve requirement at 10 percent, banks hold no excess reserves, and no additional currency is held. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the money multiplier? b. By how much will the total potential money supply change if the Federal Reserve changes the amount of reserves by -$50 million? $ million C. Suppose the Federal Reserve wants to decrease the total money supply by $600 million. By how much should the Federal Reserve change reserves to achieve this goal?

In order to support a robust economy for U.S. households, communities, and businesses, the Federal Reserve keeps an eye on the risks to the financial system and participates both domestically and internationally.

What are the 12 government holds?

Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco are the Reserve Banks, which are designed to be decentralized.

A: What is the multiplier of wealth? 10

B: If the Federal Reserve changes the amount of reserves by 50 million, by how much will the total money supply change? 500,000,000

C: Let's say the Federal Reserve wants to bring the total amount of money on hand down to $600 million. To achieve this objective, how much should the Federal Reserve change its reserves? sixty million.

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