If the Federal Reserve sells $10 million in government securities in t
If the Federal Reserve sells $10 million in government securities in the open market, with a 10 percent required reserve ratio on deposits, the maximum increase in deposits would be
a. -$50 million.
b. -$100 million.
c. $10 million.
d. $100 million.
e. none of the above
ANSWER
B
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