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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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