If you're seeing this message, it means we're having trouble loading external resources on our website.

If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked.

Main content

Monetary policy: foundational concepts

Problem

The central bank in Hamsterville has bought $100 in bonds from a bank. The reserve requirement is 25%.
What is the maximum possible change in the money supply?
Choose 1 answer: