The Fed makes an initial cash injection of $10,000 by buying a $10,000 Treasury Bond from Janis. Janis deposits the $10,000 in her checking account at Friendly Bank. Friendly Bank holds $1,000 in reserve and lends out $9,000 to Bruno, who deposits this $9,000 in his checking account at Last National Bank. What is the total money supply so far in this question?

a. $19,000
b. $10,000
c. $9,000
d. $1,000

a

Economics

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Assume that in an economy with 200M inhabitants, 90M work, 4M are looking for a job, 3M receive unemployment insurance compensation, and 6M receive unemployment insurance compensation and are looking for a job. What is the unemployment rate?

A) 13% B) 10% C) 6.5% D) 5%

Economics

A small increase in the annual rate of economic growth can lead to a larger increase in growth over time due to the effects of

A) the money supply. B) compounding. C) regression towards the mean. D) averaging.

Economics