Consider the following situations.a. Bank reserves are $100, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.25. Find deposits and themoney supply.Instructions: Enter your responses as whole numbers.Deposits: $Money supply:b. The money supply is $500 and currency held by the public equals bank reserves. The desired reserve-deposit ratio is 0.25. Findcurrency held by the public and bank reserves.Instructions: Enter your responses as whole numbers.Currency held by the public: $Bank reserves:c. The money supply is $1,250, of which $250 is currency held by the public. Bank reserves are $100. Find the desired reserve-depositratio.Instructions: Enter your response rounded to one decimal place.Desired reserve-deposit ratio:

A) Deposits computed as, => (Reserve / reserve deposit ratio) Therefore, Deposits $100/0.25 =…

Lonsider the following situations. a. Bank reserves are $100, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.25. Find deposits and th money supply. Instructions: Enter your responses as whole numbers. Deposits: Money supply: $ b. The money supply is $500 and currency held by the public equals bank reserves. The desired reserve-deposit ratio is 0.25. Fine currency held by the public and bank reserves. Instructions: Enter your responses as whole numbers. Currency held by the public: $1 Bank reserves: C. The money supply is $1,250, of which $250 is currency held by the public. Bank reserves are $100. Find the desired reserve-depo ratio. Instructions: Enter your response rounded to one decimal place. Desired reserve-deposit ratio: