When answering this question, don't round up your answer. Suppose that ever time a commercial bank receives a $993320 deposit, the law requires it to kee at least $744990 as reserves. For every 1 additional dollar of excess reserves, the money supply in the whole system will increase by=
When answering this question, don't round up your answer. Suppose that ever time a commercial bank receives a $993320 deposit, the law requires it to kee at least $744990 as reserves. For every 1 additional dollar of excess reserves, the money supply in the whole system will increase by=
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![When answering this question, don't round up your answer. Suppose that every
time a commercial bank receives a $993320 deposit, the law requires it to keep
at least $744990 as reserves.
For every 1 additional dollar of excess reserves, the money supply in the whole
system will increase by=](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58bd1525-75ec-46a5-be25-53d8789ee850%2F5cd5bb38-99cc-4d1b-b316-019f2324d511%2Fb9wfuei_processed.jpeg&w=3840&q=75)
Transcribed Image Text:When answering this question, don't round up your answer. Suppose that every
time a commercial bank receives a $993320 deposit, the law requires it to keep
at least $744990 as reserves.
For every 1 additional dollar of excess reserves, the money supply in the whole
system will increase by=
![Suppose
Money market mutual fund held by individuals= KD 272219
Stock portfolio= KD 893314
Total non-monetary wealth= KD 358365
Saving deposits= KD 532198
Currency held by the central bank= KD 363648
Currency= KD 557642
Small-denominated time deposits KD 700327
Large-denominated time deposits= KD 385382
Currency held by the commercial banks KD 371748
Checkable deposits= KD 791867
M1 equals=
M2 equals=](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58bd1525-75ec-46a5-be25-53d8789ee850%2F5cd5bb38-99cc-4d1b-b316-019f2324d511%2Fkrpdrmd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose
Money market mutual fund held by individuals= KD 272219
Stock portfolio= KD 893314
Total non-monetary wealth= KD 358365
Saving deposits= KD 532198
Currency held by the central bank= KD 363648
Currency= KD 557642
Small-denominated time deposits KD 700327
Large-denominated time deposits= KD 385382
Currency held by the commercial banks KD 371748
Checkable deposits= KD 791867
M1 equals=
M2 equals=
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