Thursday, December 24, 2009

Bond Rating System Explain Why A Reduction In The Required Reserve Ratio Cannot, At Least Initially, Increase Total Reserves In T?

Explain why a reduction in the required reserve ratio cannot, at least initially, increase total reserves in t? - bond rating system

Explain why a reduction in the required reserve ratio is not on, at least initially, the total increase in reserves in the banking system. What is the discount rate with the reduction? What happens if the central bank sold bonds of the United States or in the banking system?

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