2014CFA1级-每日一练-经济学-20140315 banking, because, purchase, decrease, potential

Fdez

On January 5, the U.S. Federal Reserve (the Fed) bought $10,000,000 of U.S. Treasury securities in the open market. At the time, the reserve requirement was 25%, and all banks had zero excess reserves. What is the potential impact of the Fed's purchase on the U.S. money supply?


A)$10,000,000 increase.
B)$40,000,000 increase.
C)$25,000,000 decrease.




答案 B
Buying securities by the Fed increases the money supply because they are injecting money into the banking system. The money supply can potentially increase by 1 / 0.25