Suppose that the Bank of Korea has purchased bonds of 2000 from the Kakao Bank.

Now suppose that under the required reserve ratio of 2%, commerical banks including Kakao Bank use their all of their excess reserves to make a loan and borrowers deposit to the banks.

5. What is the total amount of checkable deposit created from the Bank of Korea's open market purchase? (3 pt)

6. If the currency in circulation is given by 3000 compute the money multiplier.

Suppose that the Bank of Korea has purchased bonds of 2000 from the Kakao Bank. Now suppose that under the required reserve ratio of 2%, commerical banks including Kakao Bank use their all of their excess reserves to make a loan and borrowers deposit to the banks. 5. What is the total amount of checkable deposit created from the Bank of Korea's open market purchase? (3 pt) 6. If the currency in circulation is given by 3000, compute the money multiplier. (4 pt) Suppose that the Bank of Korea has purchased bonds of 2000 from the Kakao Bank. Now suppose that under the required reserve ratio of 2%, commerical banks including Kakao Bank use their all of their excess reserves to make a loan and borrowers deposit to the banks. 5. What is the total amount of checkable deposit created from the Bank of Korea's open market purchase? (3 pt) 6. If the currency in circulation is given by 3000, compute the money multiplier. (4 pt)