Suppose that the reserve requirement for checking deposits is 10 percent and that banks do not hold any excess reserves. a. If the Fed sells $1 million of government bonds, what is the effect on the economys reserves and money supply? b. Now suppose the Fed lowers the reserverequirement to 5 percent, but banks choose tohold another 5 percent of deposits as excessreserves. Why might banks do so? What isthe overall change in the money multiplierand the money supply as a result of theseactions?
Victoria Classics Bedding Set Proposal Le Majestic Barriere Cannes December 9th, 2015 in Cannes 1 Our team Kim Thanh NGUYEN Medhi Melliti-Steiner Angelita Bossoletti Marketing Manager Key account Manager Product Manager 2 Agenda 1. Objectives 2. RFQ summary 3. Our company 4. Our products 5. Our proposal 6. Pricing 7. Specific issues 8. What’s next 9. Summary 10. Back up