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
Homework Answers
Answer
the money supply= currency in circulation+checkable deposits
=400+800
=$1200 billion
the money supply is $1200 billion
excess reserves are not included in the money supply.
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If the required reserve ratio is 10 percent, currency in
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