QUESTION 4 Below is the initial balance sheet of Rakyat Bank Berhad Assets Cash Loans Total 250 Customers deposit 750 1000 Total Liabilities a) What is the bank's cash ratio? b) Calculate the money multiplier. c) Calculate total money supply. d) Calculate total credit that can be created. 1000 1000 e) If the central bank increased the reserve requirement to 30%, calculate the total money supply. Has the money supply increased or decreased?

QUESTION 4 Below is the initial balance sheet of Rakyat Bank Berhad Assets Cash Loans Total 250 Customers deposit 750 1000 Total Liabilities a) What is the bank's cash ratio? b) Calculate the money multiplier. c) Calculate total money supply. d) Calculate total credit that can be created. 1000 1000 e) If the central bank increased the reserve requirement to 30%, calculate the total money supply. Has the money supply increased or decreased?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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