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Again, please use the following data for an economy that has only two banks, Bank A and Bank B. Partial balance sheet information is given for each bank below: Bank A: Reserves on hand $65,000 Deposit in the Fed $40,000 US government bonds $10,000 Checking account balances $120,000 Savings account balances $30,000 Bank B: Cash in the bank $20,000 US government bonds $8000 Deposit in the Fed $50,000 Savings account balances $25,000 Checking account balances $100,000 In addition, people in this economy hold $4400 in cash, and all banks have the same reserve requirements we've used all semester. Calculate the (economy-wide) currency ratio. Enter your answer in decimal format (not petcent) carefully following all numeric instructions, rounding to three decimal places. For example, if you get 0.49823, enter only 0.498 in the blank.

Again, please use the following data for an economy that has only two banks, Bank A and Bank B. Partial balance sheet information is given for each bank below: Bank A: Reserves on hand $65,000 Deposit in the Fed $40,000 US government bonds $10,000 Checking account balances $120,000 Savings account balances $30,000 Bank B: Cash in the bank $20,000 US government bonds $8000 Deposit in the Fed $50,000 Savings account balances $25,000 Checking account balances $100,000 In addition, people in this economy hold $4400 in cash, and all banks have the same reserve requirements we've used all semester. Calculate the (economy-wide) currency ratio. Enter your answer in decimal format (not petcent) carefully following all numeric instructions, rounding to three decimal places. For example, if you get 0.49823, enter only 0.498 in the blank.

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: The Monetary System
Section: Chapter Questions
Problem 2PA
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Again, please use the following data for an economy that has only two banks, Bank A and Bank B. Partial balance sheet information is given for each bank below: Bank A: Reserves on hand $65,000 Deposit in the Fed $40,000 US government bonds $10,000 Checking account balances $120,000 Savings account balances $30,000 Bank B: Cash in the bank $20,000 US government bonds $8000 Deposit in the Fed $50,000 Savings account balances $25,000 Checking account balances $100,000 In addition, people in this economy hold $4400 in cash, and all banks have the same reserve requirements we've used all semester. Calculate the (economy-wide) currency ratio. Enter your answer in decimal format (not peicent) carefully following all numeric instructions, rounding to three decimal places. For example,it you get 0.49823, enter only 0.498 in the blank.
Transcribed Image Text:Again, please use the following data for an economy that has only two banks, Bank A and Bank B. Partial balance sheet information is given for each bank below: Bank A: Reserves on hand $65,000 Deposit in the Fed $40,000 US government bonds $10,000 Checking account balances $120,000 Savings account balances $30,000 Bank B: Cash in the bank $20,000 US government bonds $8000 Deposit in the Fed $50,000 Savings account balances $25,000 Checking account balances $100,000 In addition, people in this economy hold $4400 in cash, and all banks have the same reserve requirements we've used all semester. Calculate the (economy-wide) currency ratio. Enter your answer in decimal format (not peicent) carefully following all numeric instructions, rounding to three decimal places. For example,it you get 0.49823, enter only 0.498 in the blank.
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