If the ratio of currency to deposits is 0.40, the ratio of required reserves to deposits...
If the ratio of currency to deposits is 0.40, the ratio of required reserves to deposits is 0.10 and the ratio of excess reserves to deposits is 0.20, the simple money multiplier = [a]
Homework Answers
ANswer
Simple money multiplier =1/ratio of required reserves
=1/0.1
=10
the simple money multiplier is 10
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If the ratio of currency to deposits is 0.40, the ratio of
required reserves to deposits...
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
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?
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2. Suppose the cash:deposit ratio is 0.04, required reserves are 10% of deposits, and excess reserves...
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Compute the impact on the money multiplier of an increase in the currency-to-deposit ratio from 10...
Compute the impact on the money multiplier of an increase in the currency-to-deposit ratio from 10 percent to 14 percent when the reserve requirement Is 8 percent of deposits, and banks' desired excess reserves are 3 percent of deposits Instructions: Enter your responses rounded to two decimal places. When desired currency holdings 10 % of deposits, m When desired currency holdings 14 % of deposits, m Suppose the currency-to-deposit ratio is 0.2, the excess reserve-to-deposit ratio is 0.05, and the...
Use the following data to answer the below question. Required reserve ratio is 10% Checkable deposits...
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Use the following data to answer the below question. Required reserve ratio is 10% Checkable deposits...
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Assets Liabilities Loans Deposits $65 million Required Reserves Excess Reserves $2 million Treasury Securities $5 million...
Assets Liabilities Loans Deposits $65 million Required Reserves Excess Reserves $2 million Treasury Securities $5 million The Fed sets a reserve requirement of 3% on deposits between $16 million and $122 million. If the bank holds $5 million dollars in US Treasury Securities and $2 million in excess reserves, compute the bank’s required reserve level and the quantity of loans this bank is able to make to the public. What is the value of the money multiplier? [Money Multiplier =...
6- The SIMPLE financial system has these relationships: The ratio of reserves to total deposits is...
6- The SIMPLE financial system has these relationships: The ratio of reserves to total deposits is 12 percent, and the ratio of non-checkable deposits to checkable deposits is 40 percent. In addition, currency held by the nonbank public amounts to 15 percent of checkable deposits. The ratio of government deposits to checkable deposits is 8 percent, and the monetary base is $300 million. a. Determine the size of the MI money multiplier and the size of the money supply. b....
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
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?
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,...
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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/
6- The SIMPLE financial system has these relationships: The ratio of reserves to total deposits is 12 percent, and the ratio of non-checkable deposits to checkable deposits is 40 percent. In addition, currency held by the nonbank public amounts to 15 percent of checkable deposits. The ratio of government deposits to checkable deposits is 8 percent, and the monetary base is $300 million. a. Determine the size of the MI money multiplier and the size of the money supply. b....
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