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Use the following data to answer the following questions. Assume the transactions accounts and demand deposits are the same thing. Vault Cash Member Bank
Use the following data to answer the following questions. Assume the transactions accounts and demand deposits are the same thing. Vault Cash Member Bank Deposits at the Central Bank Currency in Circulation Travellers Cheque Transaction Accounts (Demand Deposits Time and Other Savings Accounts Retail Money Market Accounts 40 10 775 8 675 1500 800 a) What is the level of the Monetary Base? b) What is the level of total bank reserves? What is the value for the Money (or Deposit, or Credit Multiplier? d) What is the level of M1? e) What is the level of M2? (3 Marks) e) How much will a K1,000 deposit of new currency into the banking system change the deposits and loans by? (3 Marks) (2 Marks) (2 Marks) (3 Marks) (2 Marks)
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