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Ok... I'm very confused here. I have no idea how to calculate the different aspects of money creation. When do I used the different amounts
Ok... I'm very confused here. I have no idea how to calculate the different aspects of money creation. When do I used the different amounts found on the balance sheet? When do I use the percent ratios? I'm completely lost. I'd love to see a step-by-step breakdown if possible! Thank you in advance!
Consider the following bank balance sheet (i.e., for a country with only one bank).The required reserve ratio is 12.5% and the currency ratio is 15%.All deposits are demand deposits.Use this information to answer the questions below.
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