Question
Assume that the following data describe the banking system: Total Reserves: $300 billion Checkable Deposits: $900 billion Cash held by the public: $125 billion Reserve
Assume that the following data describe the banking system:
Total Reserves: $300 billion
Checkable Deposits: $900 billion
Cash held by the public: $125 billion
Reserve Requirement: 0.10
a) How large is the money supply (M1)?
b) How large are required reserves?
c) How large are excess reserves?
d) How much more money could banks lend and still meet the reserve ratio?
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Global Capitalism Its Fall And Rise In The Twentieth Century
Authors: Jeffry Frieden
1st Edition
039332981X, 9780393329810
