Determine what is the value of checkable deposits

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Reference no: EM13241417

Consider the following data.
Currency $400 billion
Bank reserves $500 billion

(a) If banks are holding $80 billion in required reserves, and the required reserve ratio = 0.10, what is the value of checkable deposits?

(b) Given this information, what is the value of the quantity of M1? What is the value of monetary base? What is the value of the money mulitplier?

Reference no: EM13241417

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