If the required reserve ratio is 9 percent, currency in circulation is $450 million, checkable deposits are $660 million, and excess reserves total $0.55 million, then calculate the following: (round to four decimal places)

1. Simple money multiplier:

2. Assume that the initial deposit in a bank is $250. Using the above money multiplier, what is the final increase in money supply?

3. Currency ratio:

4. Excess reserve ratio:

5. True money multiplier:

6. Total reserve:

Answer

7. Monetary base:

8. Money supply: