Question
In a country, suppose total deposits ( D ) is $75 billion. Consumers (the public) hold 25% of their money as currency (cash). Commercial banks
In a country, suppose total deposits (D) is $75 billion. Consumers (the public) hold 25% of their money as currency (cash). Commercial banks hold a third of total deposits as reserves. What are the values of reserve-deposit ratio (rr), currency-deposit ratio (cr)? How much is the money multiplier (m)? How much is the monetary base (B)? How much is money supply (M)?
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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
0133020266, 978-0133020267
