How much is the excess reserve ratio

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Reference no: EM131980962

We assume the desired currency holdings moves proportionally with checking deposits. We also assume both the required reserves and excess reserves moves proportionally with checking deposits. Suppose required reserve ratio = 10%, currency holdings = $900B, checking deposits =$1500B, excess reserves = $15B.

How much is the currency ratio?

How much are the required reserves?

How much is the excess reserve ratio?

How much is the money multiplier?

Reference no: EM131980962

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