Respuesta :
When the banking system does not desire to hold any excess reserves, $10,000 will be added from the money supply. The complete question is shown below.
A banking system can be explained as a group or network of institutions that serve financial services for us. Operating a payment system is responsible of these institutions, serving loans, taking deposits, and helping with investments.
Based on the scenario, can be calculated with this formula
Amount of reduction in money supply = $100,000 / 10% = $10,000.
Thus, when the banking system does not want to hold any excess reserves, $10,000 will be substracted from the money supply.
"Suppose that the reserve ratio is 10% when the Fed buys $100,000 of US Treasury bills from the banking system. If the banking system does NOT want to hold any excess reserves, ______ will be added to the money supply."
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