a. If Malawians have deposited none of the currency in Malawi's banks then the size of the money supply is $[ b. If Malawians have deposited all of the currency in Malawi's banks and the banks have a 100% target reserve ratio then the si the money supply is $ c. If Malawians have deposited 45% of the currency in Malawi's banks and the banks have a 100% target reserve ratio then the the money supply is $ d. If Malawians have deposited 45% of the currency in Malawi's banks and the banks have a 12% target reserve ratio and are fll loaned up then the size of the money supply is $
a. If Malawians have deposited none of the currency in Malawi's banks then the size of the money supply is $[ b. If Malawians have deposited all of the currency in Malawi's banks and the banks have a 100% target reserve ratio then the si the money supply is $ c. If Malawians have deposited 45% of the currency in Malawi's banks and the banks have a 100% target reserve ratio then the the money supply is $ d. If Malawians have deposited 45% of the currency in Malawi's banks and the banks have a 12% target reserve ratio and are fll loaned up then the size of the money supply is $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The central bank of Malawi has issued $125,000 in Malawian dollars. What is the size of the money supply in each case below? Round
your answers below to the nearest whole number.
a. If Malawians have deposited none of the currency in Malawi's banks then the size of the money supply is $[
b. If Malawians have deposited all of the currency in Malawi's banks and the banks have a 100% target reserve ratio then the size of
the money supply is $
c. If Malawians have deposited 45% of the currency in Malawi's banks and the banks have a 100% target reserve ratio then the size of
the money supply is $
d. If Malawians have deposited 45% of the currency in Malawi's banks and the banks have a 12% target reserve ratio and are fully
loaned up then the size of the money supply is$|
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