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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

  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:

  1. Calculate the currency ratio. (3 mark)
  2. Calculate the excess reserve ratio. (3 mark)
  3. Calculate the money multiplier. (6 mark)
  4. If Central Bank of Malaysia increase the reserve requirement from 2% to 3%, calculate the new money multiplier. (4 mark)

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