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 $1000 Savings Deposits

business economics

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Answer 1

Answer #1

Total deposit = Saving deposit & checkoble deposit = 193 + 1000 = 1193 Required Reserve Ratio=10% Level of Required Reserve = CD = 107 1193 cb = 6.0896 Excess ER Reserve deposit Patio = Total deposit =84.7 1193 ERIO =0.07099 Money multiplier = L t c/o

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