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Business, 26.02.2020 05:54 maddylosin1032

5. Use the information below to answer question 5:

Commercial Banks Federal Reserve
Assets Liabilities. Assets Liabilities
Reserves 400 Deposits 2000 Securities 900 Currency 500
Loans 1,600 Equity 500 Reserves 400
Securities 500

Public
Assets Liabilities.
Deposits 2,000 Loans 1,600
Currency 500 Net Worth 900

Assume that the required reserve ratio (ratio of reserves to deposits) is .
1 Calculate the following:
(a) excess reserves
(b) the monetary base (B)
(c) the money multiplier

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Answers: 2

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5. Use the information below to answer question 5:

Commercial Banks Federal Reserve

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