# 4. If a bank has $20,000 in deposits, and $2.500 in reserves, and if rr=10%, e=2.5% and c=15%, how much excess reserves does the bank have? Be clear about whether this is positive or negative. #5. If a bank has $20,000 in deposits, and $2,500 in reserves, and if rr=10%, e=2.5% and c=15%, how much currency is in circulation? Be clear about whether this is positive or negative.
# 4. If a bank has $20,000 in deposits, and $2.500 in reserves, and if rr=10%, e=2.5% and c=15%, how much excess reserves does the bank have? Be clear about whether this is positive or negative. #5. If a bank has $20,000 in deposits, and $2,500 in reserves, and if rr=10%, e=2.5% and c=15%, how much currency is in circulation? Be clear about whether this is positive or negative.
Chapter13: Monetary Policy
Section: Chapter Questions
Problem 8E
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