(a) Given that: Total deposit as of August 2021 in Indonesia = USD 621.2 Billion Total currency in circulation as of August 2021 = USD 93.2 Billion Reserve required as of August 2021 = 2% Total Excess Reserve as of August 2021 = USD 53.2 million From the above information: (i) Calculate the monetary base (ii) Calculate the money multiplier. What will be the total money supply? (iii) Suppose that the Indonesia Central Bank targeted money supply to grow by 3% next year. Suggest any ONE (1) way to achieved the targeted money supply.

(a) Given that: Total deposit as of August 2021 in Indonesia = USD 621.2 Billion Total currency in circulation as of August 2021 = USD 93.2 Billion Reserve required as of August 2021 = 2% Total Excess Reserve as of August 2021 = USD 53.2 million From the above information: (i) Calculate the monetary base (ii) Calculate the money multiplier. What will be the total money supply? (iii) Suppose that the Indonesia Central Bank targeted money supply to grow by 3% next year. Suggest any ONE (1) way to achieved the targeted money supply.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter14: Banking And The Money Supply

Section: Chapter Questions

Problem 3.5P

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