Commercial banks hold governments bonds of £71, reserves of £61, and currency of £48. The public holds currency of £100 and £15 in government bonds. Deposits are equal to £1000. What is the money multiplier equal to? (State your answer to 2 decimal places.)
Commercial banks hold governments bonds of £71, reserves of £61, and currency of £48. The public holds currency of £100 and £15 in government bonds. Deposits are equal to £1000. What is the money multiplier equal to? (State your answer to 2 decimal places.)
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter13: The Federal Reserve System
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![Commercial banks hold governments bonds of £71, reserves of £61, and currency of E48. The public
holds currency of E100 and £15 in government bonds. Deposits are equal to £1000.
What is the money multiplier equal to?
(State your answer to 2 decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F130ffb82-304c-4038-8d87-f510910e0b14%2F6ff7e377-5f18-4c5d-bfec-cc2579d15b99%2Fvmnk58y_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Commercial banks hold governments bonds of £71, reserves of £61, and currency of E48. The public
holds currency of E100 and £15 in government bonds. Deposits are equal to £1000.
What is the money multiplier equal to?
(State your answer to 2 decimal places.)
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