Assume the initial deposit made by customers of Multi-Credit Savings and Loans Limited Kuntenase branch for the month of April, 2020 was GH₵ 150,000.00 (One hundred and fifty thousand Ghana cedis). However, the Bank kept 25% of the deposits as reserves whiles the remaining was given out as loans and advances to customers. i. Find the money multiplier effect for Multi-Credit Savings and Loans Limited for the month of April, 2020. ii. Calculate the total deposit made by customers of the Bank.
Q1. Assume the initial deposit made by customers of Multi-Credit Savings and Loans Limited
Kuntenase branch for the month of April, 2020 was GH₵ 150,000.00 (One hundred and fifty
thousand Ghana cedis). However, the Bank kept 25% of the deposits as reserves whiles the
remaining was given out as loans and advances to customers.
i. Find the money multiplier effect for Multi-Credit Savings and Loans Limited for the
month of April, 2020.
ii. Calculate the total deposit made by customers of the Bank.
Q2. Why does interest rate links the two halves of the IS – LM model together?
Q3. Using IS-LM
2019 (covid 19) will impact on the
Q4. ‘‘Increase in money supply in an economy increases inflation’’. Use appropriate diagram(s)
to explain the validity or otherwise of the above statement.
Q5. Briefly explain how open-market operations could be used to increase money supply.
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