The federal reserve has decided to use open market, Finance Basics

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The federal reserve has decided to use open market

Question: The Federal Reserve has decided to use open market operations by purchasing $510 million worth of Treasury securities. Assume that the reserve requirement is 15.0 percent, all commercial banks use all of the funds except required reserves to make loans, and that the public does not store any cash. By how much should the money supply increase?

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Finance Basics: The federal reserve has decided to use open market

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