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the banks have deposits of Rs. 400 billion. Their reserves are Rs. 15 billion, two thirds of which is deposits with the central bank. Households

the banks have deposits of Rs. 400 billion. Their reserves are Rs. 15 billion, two thirds of which is deposits with the central bank. Households and firms hold Rs. 30 billion in banknotes. Calculate:

i.The monetary base

ii.The quantity of money

iii.The banks' reserves ratio (%)

iv.The currency drain ratio (%)

Money multiplier

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