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Given that: Total deposit as of August 2021 in Malaysia = USD 514.842 Billion Total currency in circulation as of August 2021 = USD 114.1
- Given that:
Total deposit as of August 2021 in Malaysia = USD 514.842 Billion
Total currency in circulation as of August 2021 = USD 114.1 Billion
Reserve required as of August 2021 = 2%
Total Excess Reserve as of August 2021 = USD 113.06 million
From the above information:
- Calculate the currency ratio. (3 mark)
- Calculate the excess reserve ratio. (3 mark)
- Calculate the money multiplier. (6 mark)
- If Central Bank of Malaysia increase the reserve requirement from 2% to 3%, calculate the new money multiplier. (4 mark)
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