Suppose the total reserves held by banks amount to R13.09 million. Banks hold R1 in excess reserves for every R10 of required reserves held and the required reserve ratio (r) is 8.5%. The total amount of currency = R60 million. Calculate the amount of required reserves, and total amount of deposits held by banks, and the total amount of money supply in the system.
Suppose the total reserves held by banks amount to R13.09 million. Banks hold R1 in excess reserves for every R10 of required reserves held and the required reserve ratio (r) is 8.5%. The total amount of currency = R60 million. Calculate the amount of required reserves, and total amount of deposits held by banks, and the total amount of money supply in the system.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Money, Banking And The Financial System
Section12.3: How Banking Developed
Problem 3ST
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Suppose the total reserves held by banks amount to R13.09 million. Banks hold R1 in excess
reserves for every R10 of
total amount of currency = R60 million. Calculate the amount of required reserves, and total
amount of deposits held by banks, and the total amount of money supply in the system.
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