B. In the economy of Nocoin, Bank deposits are $300 billion, bank reserves are $15 billion of which two-thirds are deposits with the central bank. Households and firms hold $30 billion in bank notes. There are no coins. Calculate: The monetary base and quantity of money. The banks' desired reserve ratio and the currency drain ratio (as percentage). i. ii.

B. In the economy of Nocoin, Bank deposits are $300 billion, bank reserves are $15 billion of which two-thirds are deposits with the central bank. Households and firms hold $30 billion in bank notes. There are no coins. Calculate: The monetary base and quantity of money. The banks' desired reserve ratio and the currency drain ratio (as percentage). i. ii.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 12PA

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In the economy of Nocoin the banks have deposits of $300 billion. Their reserves are $36 billion, two thirds of which is in deposits with the central bank. Households and firms hold $24 billion in bank notes (dollar bills). There are no coins! Calculate the monetary base and the quantity of money. Calculate the banks' desired reserve ratio and the currency drain ratio (as percentages). The monetary base is $ billion. The quantity of money is $ billion. The banks' desired reserve ratio is percent. The currency drain ratio is percent
Please answer fast please arjent help please answer following the a and b are required please answer fast
A. MCQ Suppose the public holds 30% of their money as currency and the rest as deposits in their banks. Moreover, the central bank requires banks to maintain a reserve-deposit ratio of 15%. What will be the change in the total money supply if the central bank buys $10 million of government bonds from the public and pays for them by creating money (round to the nearest decimal point)? a. The money supply will decrease by $51.3 million b. The money supply will increase by $51.3 million c. The money supply will increase by $24.7 million d. The money supply will increase by $66.7 million
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11.2 #4
22. In the United-States, the money supply, narrowly defined (M1), contains: Group of answer choices a. Money created by the commercial banks. b. Cash, checks, and near money. c. Coins, paper money, all checkable deposits, and gold. d. Currency, checking accounts, savings accounts, and money market mutual funds. e. Coins, currency, demand deposits, and other checkable deposits.
22. Suppose the public holds 30% of their money as currency and the rest as deposits in theirbanks. Moreover, the central bank requires banks to maintain a reserve-deposit ratio of15%. What will be the change in the total money supply if the central bank buys $10million of government bonds from the public and pays for them by creating money(round to the nearest decimal point)?a. The money supply will decrease by $51.3 millionb. The money supply will increase by $51.3 millionc. The money supply will increase by $24.7 milliond. The money supply will increase by $66.7 millione. All of the answers here are incorrect Apparently the answer is c, can anyone please explain it to me? i keep getting a different answer
1. Answer each of the following questions. a. Bank reserves are 100, the public holds 200 in currency, and the desired reserve-deposit ratio is 0.25. Find deposits and the money supply. b. The money supply is 500 and currency held by the public equais bank reserves. The desired reserve-deposit ratio is 0.25. Find currency held by the public and bank reserves. c. The money supply is 1.250, of which 250 is currency held by the public. Bank reserves are 100. Find the desired teserve-deposit ratio.