Belvis Credit Union (BCU) is a financial institution that operates in Puerto Rico and reports $865 in loans, bonds of $245, cash of $210, inventory of $155, account receivable of $525, and a reserve of $395. For liabilities, it registers notes payable of $472.5, $1,382.5 in deposits, accounts payable of $200, and income tax payable of $340. Due to the healthy operation of BCU, the Federal Reserve Bank System of the United States (FED) decides to require a reserve requirement of $168.7. How much is the final money multiplier? (Please, use the reserve requirement rate of two decimal places calculated on the problem before, and round the answer of the money multiplier to one decimal place.)
Belvis Credit Union (BCU) is a financial institution that operates in Puerto Rico and reports $865 in loans, bonds of $245, cash of $210, inventory of $155, account receivable of $525, and a reserve of $395. For liabilities, it registers notes payable of $472.5, $1,382.5 in deposits, accounts payable of $200, and income tax payable of $340. Due to the healthy operation of BCU, the Federal Reserve Bank System of the United States (FED) decides to require a reserve requirement of $168.7. How much is the final money multiplier? (Please, use the reserve requirement rate of two decimal places calculated on the problem before, and round the answer of the money multiplier to one decimal place.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Belvis Credit Union (BCU) is a financial institution that operates in Puerto Rico and reports $865 in
loans, bonds of $245, cash of $210, inventory of $155, account receivable of $525, and a reserve of
$395. For liabilities, it registers notes payable of $472.5, $1,382.5 in deposits, accounts payable of
$200, and income tax payable of $340.
Due to the healthy operation of BCU, the Federal Reserve Bank System of the United States (FED)
decides to require a reserve requirement of $168.7.
How much is the final money multiplier? (Please, use the reserve requirement rate of two decimal
places calculated on the problem before, and round the answer of the money multiplier to one
decimal place.)
8.3
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