Maximum Money Supply Increase
The reserve ratio set by the Federal Reserve is at 15%. If the Fed makes an open market purchase of $1,500,000 worth of US government bonds, what will be the maximum amount of money supply that this purchase can cause?
A
$10,000,000
B
$9,000,000
C
$7,500,000
D
$15,000,000
E
$5,000,000