2. Suppose that currency in circulation is $600 billion, the amount of chequable deposits is $900 billion, excess reserves are $15 billion, and the desired reserve ratio ra is 10%. Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the monev multiplier.

2. Suppose that currency in circulation is $600 billion, the amount of chequable deposits is $900 billion, excess reserves are $15 billion, and the desired reserve ratio ra is 10%. Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the monev multiplier.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter13: The Federal Reserve System

Section: Chapter Questions

Problem 4WNG

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2. Suppose that currency in circulation is $600 billion, the amount of chequable deposits is
$900 billion, excess reserves are $15 billion, and the desired reserve ratio ra is 10%.
Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the
топey multiplier.

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