Answer each of the following questions: (LO2) a. Bank reserves are 100, the public holds 200 in
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Answer each of the following questions: (LO2)
a. Bank reserves are 100, the public holds 200 in currency, and the desired reserve-deposit ratio is 0.25.
Find deposits and the money supply.
b. The money supply is 500, and currency held by the public equals bank reserves. The desired reservedeposit ratio is 0.25. Find currency held by the public and 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-deposit ratio.
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Related Book For 
Principles Of Economics A Streamlined Approach
ISBN: 9780078021824
3rd Edition
Authors: Robert Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz
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