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Various key roles of the reserve bank of australia

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Reference no: EM131979637

Please help me with these questions.

a) Describe the various key roles of the Reserve Bank of Australia (RBA) as specified on their website.

b) i) Assume that the reserve ratio in a country is 10%. Calculate the simple money multiplier?

ii) Suppose that customers deposit $1,500 into their banks. Based on the simple money multiplier calculated in part i), calculate the total change in the money supply available in the banking system.

iii) Calculate the total change in the money supply available in the banking system if the reserve ratio decreases to 8%. Explain how money multipliers work.

Reference no: EM131979637

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