a) Based on Capital Bank's T-account above, calculate. (i) The central bank's required reserve ratio. (ii) Capital bank's desired reserve ratio. (iii) The household's currency drain ratio if they decided to hold RM20,000 as cash on hand.
a) Based on Capital Bank's T-account above, calculate. (i) The central bank's required reserve ratio. (ii) Capital bank's desired reserve ratio. (iii) The household's currency drain ratio if they decided to hold RM20,000 as cash on hand.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Reserve
Desired reserve
Loan
CAPITAL BANK
RM 1,000
RM 2,000
RM17,000
RM20,000
Deposit
RM20,000
RM20,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F17848948-ac9c-45f0-9a3b-2c29ff3a905c%2F36ce07a7-eceb-4732-a993-14385790db21%2Fj8ryphj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Reserve
Desired reserve
Loan
CAPITAL BANK
RM 1,000
RM 2,000
RM17,000
RM20,000
Deposit
RM20,000
RM20,000
![a) Based on Capital Bank's T-account above, calculate.
(1) The central bank's required reserve ratio.
(ii) Capital bank's desired reserve ratio.
(iii) The household's currency drain ratio if they decided to hold RM20,000 as cash on hand.
(iv) Supposed the central bank increased the required reserve ratio to 10%, prepare t accounts for Capital
Bank, Monopoly Bank and Rich Bank.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F17848948-ac9c-45f0-9a3b-2c29ff3a905c%2F36ce07a7-eceb-4732-a993-14385790db21%2Fn9ge83q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a) Based on Capital Bank's T-account above, calculate.
(1) The central bank's required reserve ratio.
(ii) Capital bank's desired reserve ratio.
(iii) The household's currency drain ratio if they decided to hold RM20,000 as cash on hand.
(iv) Supposed the central bank increased the required reserve ratio to 10%, prepare t accounts for Capital
Bank, Monopoly Bank and Rich Bank.
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