If non-chequable savings accounts are equal to R216 600, M1A equals R560 000, cheques, transmission and other deposits are R681 000, time deposits are equal to R192 000, notes and coins in circulation outside of the banking system amount to 15% of M1A, pension funds amount to R195 500, M2 equals R1 600 000 then money market deposit accounts are equal to Select one: aR266 400 Ob R1 031 400 Oc R426 400 Od. R350 400

If non-chequable savings accounts are equal to R216 600, M1A equals R560 000, cheques, transmission and other deposits are R681 000, time deposits are equal to R192 000, notes and coins in circulation outside of the banking system amount to 15% of M1A, pension funds amount to R195 500, M2 equals R1 600 000 then money market deposit accounts are equal to Select one: aR266 400 Ob R1 031 400 Oc R426 400 Od. R350 400

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter14: Money And Banking

Section14.2: History Of Americans Money And Banking

Problem 2R

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Concept explainers

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.

Question

If non-chequable savings accounts are equal to R216 600, M1A equals R560 000, cheques, transmission and other deposits are R681 000,
time deposits are equal to R192 000, notes and coins in circulation outside of the banking system amount to 15% of M1A, pension funds
amount to R195 500, M2 equals R1 600 000 then money market deposit accounts are equal to
Select one:
OaR266 400
Ob R1 031 400
Oc R426 400
Od R350 400

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