Total reserves $55 billion Transactions deposits: $600 billion Cash held by public: $400 billion Bonds held by public: $400 billion Stocks held by public: $140 billion Gross domestic product: $8 trillion Interest rate: 6 percent Required reserve ratio: 0.10 How large is the money supply (M1)? How much excess reserves are there? What is the money multiplier? What is the available lending capacity
Total reserves $55 billion Transactions deposits: $600 billion Cash held by public: $400 billion Bonds held by public: $400 billion Stocks held by public: $140 billion Gross domestic product: $8 trillion Interest rate: 6 percent Required reserve ratio: 0.10 How large is the money supply (M1)? How much excess reserves are there? What is the money multiplier? What is the available lending capacity
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Monetary System
Section: Chapter Questions
Problem 7PA
Related questions
Question
Total reserves |
$55 billion |
Transactions deposits: |
$600 billion |
Cash held by public: |
$400 billion |
Bonds held by public: |
$400 billion |
Stocks held by public: |
$140 billion |
|
$8 trillion |
Interest rate: |
6 percent |
|
0.10 |
- How large is the money supply (M1)?
- How much
excess reserves are there? - What is the money multiplier?
- What is the available lending capacity?
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