(13)If the central bank introduces a new $50 bill into the banking system Select
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(13)If the central bank introduces a new $50 bill into the banking system Select one: a. the money supply will fall by a multiple of $50. b. the money supply will rise by a multiple of $50. c. the money supply may rise or fall depending on whether the $50 is part of desired reserves. d. the money supply will not change. (13)If the central bank introduces a new $50 bill into the banking system Select one: a. the money supply will fall by a multiple of $50. b. the money supply will rise by a multiple of $50. c. the money supply may rise or fall depending on whether the $50 is part of desired reserves. d. the money supply will not change. Select one: a. the money supply will fall by a multiple of $50. b. the money supply will rise by a multiple of $50. c. the money supply may rise or fall depending on whether the $50 is part of desired reserves. d. the money supply will not change.Explanation / Answer
If the central bank introduces a new $50bill into tge banking system
D. The money supply will not change .
The Fed can impact the money supply by changing store prerequisites, which by and large allude to the measure of assets banks must hold against stores in ledgers. By bringing down the hold necessities, banks can credit more money, which builds the general supply of money in the economy.
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