Convert for both years Currency in billions: year 2008: 755.7 year 2018: 1528.7 Total Checkable Deposits...
Convert for both years
Currency in billions: year 2008: 755.7
year 2018: 1528.7
Total Checkable Deposits in billions: year 2008: 613.1
year 2018:2114.2
Total Reserves in billions: year 2008:8.665
year 2018: 2214.601
Required Reserves in millions: year 2008:7017
year 2018: 126792
Show steps for all parts
a) Calculate the value of the currency deposit ratio, c.
b) Use RESBALNS and RESBALREQ to calculate the amount of excess reserves, (ER), then calculate the excess reserve ratio, e.
c) Assuming the required reserve ratio, rr, is 10% calculate the value of the money multiplier m. How does it compare to the simple multiplier? Explain why the two multipliers are so different.
Homework Answers
Table 1
| Year | Currency | Checkable Deposit | Reserve | Required Reserve | Excess Reserve | c | e | m |
| 2008 | 755.7 | 613.1 | 866.5 | 701.7 | 164.8 | 1.232588 | 0.268798 | 1.39416 |
| 2018 | 1528.7 | 2114.2 | 2214.601 | 1267.92 | 946.681 | 0.723063 | 0.447773 | 1.35585 |
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Convert for both years
Currency in billions: year 2008: 755.7
year 2018: 1528.7
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