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Scenario-based on Monetary arithmetic. What are your thoughts on below scenario:- Suppose the broad money supply is $12.5 billion, currency held by the public is
Scenario-based on Monetary arithmetic. What are your thoughts on below scenario:-
Suppose the broad money supply is $12.5 billion, currency held by the public is $2.5 billion, and the reserve-deposit ratio is 0.25.
- What is the quantity of bank deposits?
- What is the quantity of bank reserves?
- What is the quantity of the monetary base?
- What is the money multiplier (give a number)?
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