Ask Question
14 May, 05:04

When an individual sells a $100 bond to the Fed, she may either deposit the check she receives or cash it for currency. How do reserves, currency in circulation and monetary base change in the banking system?

+5
Answers (1)
  1. 14 May, 05:14
    0
    The reserve currency in the circulation and in the monetary base have high-powered and the money increases

    Explanation:

    When she deposit it for the check then it is called as the currency is left for circulation in the bank and hence it is called as circulation and if she receives the currency then it is called as the monetary

    So in both the cases the value of the currency is increased that is if she deposits it she will have a high power and the bank will deposit the interest amount every month or annually if she receives it in cash then the value of the money increases
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “When an individual sells a $100 bond to the Fed, she may either deposit the check she receives or cash it for currency. How do reserves, ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers