Suppose that the nonbank public holds $4000 in currency and banks hold $7000 in total reserves. The banking system has a total of $20,000 in checkable deposits. The reserve requirement is 20%.

- Compute the monetary base.

- Compute required reserves.

- Compute excess reserves.

- Money multiplier

-Compute the excess reserves-deposit ratio.

-Compute the currency-deposit ratio.

-Compute the money multiplier. .

-Compute the money supply two ways. First, compute the money supply using the money multiplier formula above. Then, compute the money supply using the definition of the money supply