rr = required reserve ratio = 0.15 C = currency in circulation = R200 billion D = checkable deposits = R600 billion ER = excess reserves = R0.8 billion calculate the excess reserve ratio and the money multipli
rr = required reserve ratio = 0.15 C = currency in circulation = R200 billion D = checkable deposits = R600 billion ER = excess reserves = R0.8 billion calculate the excess reserve ratio and the money multipli
Chapter25: Money Creation
Section: Chapter Questions
Problem 18SQ
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Question
- rr =
required reserve ratio = 0.15 - C = currency in circulation = R200 billion
- D = checkable deposits = R600 billion
- ER =
excess reserves = R0.8 billion - calculate the excess reserve ratio and the money multiplier
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