Assuming $2 billion in gold reserves at the Central Bank, if the Central Bank holds reserves of 20% and the commercial banking system holds reserves of 15%, what will be the ratio of gold reserves to commercial bank notes and deposits? Assuming $3 billion in gold reserves, if the Central Bank holds reserves of 50% and the commercial banking system holds reserves of 10%, what will be the ratio of gold reserves to commercial bank notes and deposits? Make the balance sheets of the Central Bank and the commercial banking system based on the numbers given in question 2 above.
Assuming $2 billion in gold reserves at the Central Bank, if the Central Bank holds reserves of 20% and the commercial banking system holds reserves of 15%, what will be the ratio of gold reserves to commercial bank notes and deposits? Assuming $3 billion in gold reserves, if the Central Bank holds reserves of 50% and the commercial banking system holds reserves of 10%, what will be the ratio of gold reserves to commercial bank notes and deposits? Make the balance sheets of the Central Bank and the commercial banking system based on the numbers given in question 2 above.
Chapter1: Making Economics Decisions
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![Assuming $2 billion in gold reserves at the
Central Bank, if the Central Bank holds
reserves of 20% and the commercial banking
system holds reserves of 15%, what will be
the ratio of gold reserves to commercial bank
notes and deposits?
Assuming $3 billion in gold reserves, if the
Central Bank holds reserves of 50% and the
commercial banking system holds reserves of
10%, what will be the ratio of gold reserves
to commercial bank notes and deposits?
Make the balance sheets of the Central Bank
and the commercial banking system based on
the numbers given in question 2 above.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd23ad227-ffa5-4858-bce4-6a82efd931a6%2Fdfe323a8-f128-4cfd-b48a-9a7878e6a81e%2Fnyuyaom_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assuming $2 billion in gold reserves at the
Central Bank, if the Central Bank holds
reserves of 20% and the commercial banking
system holds reserves of 15%, what will be
the ratio of gold reserves to commercial bank
notes and deposits?
Assuming $3 billion in gold reserves, if the
Central Bank holds reserves of 50% and the
commercial banking system holds reserves of
10%, what will be the ratio of gold reserves
to commercial bank notes and deposits?
Make the balance sheets of the Central Bank
and the commercial banking system based on
the numbers given in question 2 above.
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