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5. Suppose the required reserve ratio is 9%, currency in circulation is $700 billion, the...

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Accounting

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5. Suppose the required reserve ratio is 9%, currency in circulation is $700 billion, the amount of checkable deposits is $930 billion, and excess reserves are $230 billion. a. Suppose the central bank is fighting rising inflation. The FOMC wants the money supply to fall by $60 billion. Assuming the ratios you calculated in question 2 are the same, calculate the size of the open market sale that would be needed to cause a change in the money supply of $60 billion

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