The banks have deposits of$300 billion. Their reserves are$15 billion, two thirds of which is in deposits with the central bank. Households and firms hold$30 billion in bank notes. There are nocoins! The banks have no unplanned reserves. The Bank ofApple, the centralbank, decreases bank reserves by$0.5 billion.

The money multiplier in Apple is 7.33 and the quantity of money decreases by $3.67billion.

What happens to the quantity ofdeposits, andcurrency?