monetary base3reserve balances at the Fedchecking deposits at banks12M1 money supply Consider the following data on the Federal Reserve's balance sheet: securities heldoutright 10000, discount loans to banks = 2000 and currency in circulation = 5000of which all is held by the non-bank public. Assume that all categories of the Fed'sbalance sheet not mentioned are zero. Private commercial banks have a desiredreserve ratio of 10%. Compute the numerical value of the following (do not usedollar signs, commas or decimals):%3Dmonetary basereserye balances at the Fedchecking deposits at banks

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monetary base reserve balances at the Fed checking deposits at banks

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

monetary base
3
reserve balances at the Fed
checking deposits at banks
12
M1 money supply

Consider the following data on the Federal Reserve's balance sheet: securities held
outright 10000, discount loans to banks = 2000 and currency in circulation = 5000
of which all is held by the non-bank public. Assume that all categories of the Fed's
balance sheet not mentioned are zero. Private commercial banks have a desired
reserve ratio of 10%. Compute the numerical value of the following (do not use
dollar signs, commas or decimals):
%3D
monetary base
reserye balances at the Fed
checking deposits at banks

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