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Riel Bank has a reserve ratio of 5%, $42 million issued in deposits, and $2,100,000 in actual reserves. Enter your responses below rounded to a
Riel Bank has a reserve ratio of 5%, $42 million issued in deposits, and $2,100,000 in actual reserves. Enter your responses below rounded to a whole number. Include a minus sign () for any negative values.
a. The bank's initial desired reserves are $ and its initial excess reserves are $ .
b. If $210,000 in currency is withdrawn in the bank, its excess reserves become $ .
c. The money multiplier in this banking system is .
d. The final amount by which the money supply can change once the contraction of money in the banking system is complete is $
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