Question
How to calculate those problems? 1. The monetary base (H) is $ 1,000; the currency ratio is 25 per cent; the reserve ratio is 10
How to calculate those problems?
1. The monetary base (H) is $ 1,000; the currency ratio is 25 per cent; the reserve ratio is 10 per cent. What is the dollar amount of deposits?
| Not more than $ 3,000 | ||
| More than $ 3,000 but not more than $ 3,250 | ||
| More than $ 3,250 but not more than $ 3,500 | ||
| More than $ 3,500 |
2. The monetary base (H) is $ 1,000; the currency ratio is 40 per cent; the reserve ratio is 25 per cent. What is the total amount of loans?
| More than $ 2250 | ||
| More than $ 2000, but not more than $ 2250 | ||
| More than $ 1500, but not more than $ 1750 | ||
| Not more than $ 1500 |
3.
The monetary base (H) is $ 1,000; the currency ratio is 25 per cent; the reserve ratio is 10 per cent. What is the dollar amount of reserves?
| Not more than $ 250 | ||
| More than $ 250 but not more than $ 300 | ||
| More than $ 300 but not more than $ 350 | ||
| More than $ 300 |
4. The monetary base (H) is $ 1,000; the currency ratio is 40 per cent; the reserve ratio is 25 per cent. What is the total amount of reserves?
| More than $ 225 | ||
| More than $ 200, but not more than $ 225 | ||
| More than $ 150, but not more than $ 175 | ||
| Not more than $ 150 |
Step by Step Solution
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Step: 1
The detailed answer for the above question is provided below 1 To calculate the dollar amount of deposits we can use the formula for the money multipl...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
