Exercises
Money and Banking
Money and Banking
In a banking system, there are $1000 reserves, of which $600 is excess reserves. Also, there are $2000 deposits. What is the maximum banking multiplier?
Skills required: remember important formula and apply it to the question
Related concepts:
In a banking system, there are $1300 reserves, of which $500 is excess reserves. Also, there are $2000 deposits. What is the maximum banking multiplier?
Skills required: remember important formula and apply it to the question
Related concepts:
Suppose the public holds $300 cash and the monetary base is $500. The required reserve ratio is 20%. If all the banks are fully loaned up, what will be the amount of deposits?
Skills required: remember important formula and apply it to the question
Suppose the public holds $500 cash and the monetary base is $1000. The required reserve ratio is 25%. If all the banks are fully loaned up, what will be the amount of deposits?
Skills required: remember important formula and apply it to the question
Mr Wong withdraws $500 000 in cash from a deposit-taking company. He then deposits $300 000 with a bank as a time deposit and remits the remaining $200 000 overseas for the settlement of debts. What are the effects on M1, M2 and M3?
Skills required: remember important formula and apply it to the question
Related concepts: