Suppose that required reserve ratio is 10%, currency in circulation is $600 billion, the amount of checkable deposits is $1800 billion, and excess reserves are $120 billion. a) Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the money multiplier.
Suppose that required reserve ratio is 10%, currency in circulation is $600 billion, the amount of checkable deposits is $1800 billion, and excess reserves are $120 billion. a) Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the money multiplier.
Chapter25: Money Creation
Section: Chapter Questions
Problem 9SQP
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