Required reserve ratio is 0,2, there are 217B currency in circulation, 667B checkable deposits, and 4,6B...

Question

Question

Required reserve ratio is 0,2, there are 217B currency in circulation, 667B checkable deposits, and 4,6B of excess reserves.

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Money Multiplier = 1 / Reserve Ratio

The Reserve Ratio is 0.2. The Money Multiplier is calculated as follows:

$Money Multiplier = = 5$

Add a comment

Answer 2

Similar Homework Help Questions

Required reserve ratio is 0,2, there are 217B currency in circulation, 667B checkable deposits, and 4,6B...

Required reserve ratio is 0,2, there are 217B currency in circulation, 667B checkable deposits, and 4,6B of excess reserves. What is money multiplier? ” in circulation, 6678 chockablo deposits
1. If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable...

1. If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the money supply is billion. 2. If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the currency-deposit ratio is...
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits...

If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion then the money supply is a) 1200 b)8400 c) 8000 d)1200.8 answer is A

1. Suppose that currency in circulation is $600 billion, the amount of checkable deposits is $900...

1. Suppose that currency in circulation is $600 billion, the amount of checkable deposits is $900 billion, required reserve on checkable deposits is 10% and excess reserves are $15 billion. a. Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the money multiplier. Suppose the central bank conducts an unusually large open market purchase of bonds held by banks of $1400 billion due to a sharp contraction in the economy. Assuming the ratios, you calculated in...
Consider a banking system with the following characteristics: Currency in circulation: $250 million Checkable Deposits: $500...

Consider a banking system with the following characteristics: Currency in circulation: $250 million Checkable Deposits: $500 million Bank Reserves: $100 million Reserve Requirement: 10% Calculate the following. Make sure to show your work. Currency ratio Excess reserve ratio Monetary base Money multiplier M1 money supply Repeat the calculations in part a above, but assuming that households now decide to hold more in currency in circulation: $300 million. What can we conclude about the effect that this change in the public’s...
6. If reserves in the banking system increase by $100, then checkable deposits will increase by...

6. If reserves in the banking system increase by $100, then checkable deposits will increase by $400 in the simple model of deposit creation when the required reserve ratio is eserve retioKeserves De posi+s 7. If the required reserve ratio is one-third, curreney in circulation is $300 billion, checkable deposits are $900 billion, and there is no excess reserve, then the MI money multiplier is 8. If the required reserve ratio is 10 percent, currency in circulation is $400 billion,...

Use the following data to answer the below question. Required reserve ratio is 10% Checkable deposits...

Use the following data to answer the below question. Required reserve ratio is 10% Checkable deposits $900 Savings Deposits $181 Total reserves $188 Currency held by the public $139 What is the level of required reserves? $90 What is the level of excess reserves? $98 What is the value of the monetary base $ 327 What is the currency ratio? (round to 2 decimals) 0.15 What is the money multiplier? (round to 2 decimals)
use the following data to answer the below question required reserve ratio is 10% checkable deposits...

use the following data to answer the below question required reserve ratio is 10% checkable deposits $1100 savings deposits $240 total reserves $190 currency held by the public $95 What is the level of required reserves? what is the level of excess reserves? what is The value of monetary base $? what is the currency ratio ? round answer to two decimal places what is the money multiplier ? round answer to two decimal places
Use the following data to answer the below question. Required reserve ratio is 10% Checkable deposits...

Use the following data to answer the below question. Required reserve ratio is 10% Checkable deposits $1000 Savings Deposits $193 Total reserves $204 Currency held by the public $107 What is the level of required reserves? 20.4 What is the level of excess reserves? | What is the value of the monetary base $ ? What is the currency ratio? Round answer to 2 decimal places/ What is the money multiplier? Round anwer to 2 decimal places/

14) If the desired reserve ratio is ten percent, currency in circulation is $400 billion, and...

14) If the desired reserve ratio is ten percent, currency in circulation is $400 billion, and chequable deposits are $800 billion, then the money multiplier is approximately ________. A) 2.5 B) 1.67 C) 2.0 D) 0.601 16) If the desired reserve ratio is ten percent, currency in circulation is $400 billion, chequable deposits are $800 billion, and excess reserves total $0.8 billion, then the excess reserves-chequable deposit ratio is ________. A) 0.001 B) 0.10 C) 0.01 17) If the desired...

Required reserve ratio is 0,2, there are 217B currency in circulation, 667B checkable deposits, and 4,6B...

Homework Answers