Riel Bank has a reserve ratio of 5%, $44 million issued in deposits, and $2,200,000 in actual reserves. Enter your responses below rounded to a whole number. Include a minus sign (-) for any negative values. a. The bank's initial desired reserves are $2,200,00 and its initial excess reserves are $ 0. b. If $220,000 in currency is withdrawn in the bank, its excess reserves become $ c. The money multiplier in this banking system is d. The final amount by which the money supply can change once the contraction of money in the banking system is complete is $ 20
Riel Bank has a reserve ratio of 5%, $44 million issued in deposits, and $2,200,000 in actual reserves. Enter your responses below rounded to a whole number. Include a minus sign (-) for any negative values. a. The bank's initial desired reserves are $2,200,00 and its initial excess reserves are $ 0. b. If $220,000 in currency is withdrawn in the bank, its excess reserves become $ c. The money multiplier in this banking system is d. The final amount by which the money supply can change once the contraction of money in the banking system is complete is $ 20
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Riel Bank has a reserve ratio of 5%, $44 million issued in deposits, and
$2,200,000 in actual reserves. Enter your responses below rounded to a whole number.
Include a minus sign (-) for any negative values.
a. The bank's initial desired reserves are $ 2,200,00 and its initial excess
reserves are $
이.
b. If $220,000 in currency is withdrawn in the bank, its excess reserves
become $
c. The money multiplier in this banking system is
d. The final amount by which the money supply can change once the
contraction of money in the banking system is complete is $
20.
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