Question
Assume that you deposit $8,000 in a bank and the desired reserve ratio is 5 percent. (a) Calculate how much the bank must keep as
Assume that you deposit $8,000 in a bank and the desired reserve ratio is 5 percent.
(a) Calculate how much the bank must keep as reserves. (2 marks)
(b) What is the amount of excess reserves? (2 marks)
(c) Calculate the money multiplier. (2 marks)
(d) By what amount money will be created in the economy (deposit creation)? (2 marks)
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Hostile Money Currencies In Conflict
Authors: Paul Wilson
1st Edition
075099178X, 9780750991780
