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Consider the following situations: a. Bank reserves are $150, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.2. Find deposits
Consider the following situations: a. Bank reserves are $150, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.2. Find deposits and the money supply. Instructions: Enter your responses as whole numbers. Deposits: $ Money supply: $1 b. The money supply is $450 and currency held by the public equals bank reserves. The desired reserve-deposit ratio is 0.25. Find currency held by the public and bank reserves. Instructions: Enter your responses as whole numbers. Currency held by the public: $[ Bank reserves: $ c. The money supply is $1,100, of which $600 is currency held by the public. Bark reserves are $100. Find the desired reserve-deposit ratio. Instructions: Enter your response rounded to two decimal places. Desired reserve-deposit ratio:
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