How large is the money supply, Macroeconomics

Assignment Help:

Assume that the following data describe the condition of the banking system:

Total Reserves                         $200 billion

Transactions Deposited          $700 billion

Cash held by public                 $100 billion

Reserve Requirement                     0.20

(a) How large is the money supply (M1)?

(b) How large are required reserves?

(c) How large are excess reserves?

(d) By how much could the banks increase their lending activity?


Related Discussions:- How large is the money supply

Two countries had the same levelof real gdp per capita, If Country A had fo...

If Country A had four times the initial level of real GDP per capita of Country B and it was growing at 1.4 percent a year, while real GDP was growing at 2.3 percent in Country B,

Economic incidence of the tax on the consumers price, Suppose the demand fo...

Suppose the demand for bread is D(p), where dD/dp Illustrate equilibrium with price on the Y-axis and quantity on the X-axis in which the t > 0. Show the economic incidence

The effect of market for milk, 1a. Show on the market for milk the effect o...

1a. Show on the market for milk the effect of the introduction of BGH (bovine growth hormone). 1b. Show on the market for cheese the impact of what happened in the milk market.

Domestic investment, How will a fall in domestic investment affect the trad...

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world, in

What is a monopoly, When single business or corporation dominates its area ...

When single business or corporation dominates its area and squeezes out all its competition, the result is the consumer does not have a open choice, and inevitably, the price of it

Pr0ject 2, how long will be the solution

how long will be the solution

Equilibrium price of guitars, Suppose the demand for guitars in State Colle...

Suppose the demand for guitars in State College is given by Qd = 9000 - 12P where Qd is the quantity demanded, and P is the price of guitars. Also, suppose the supply of guitars is

Explain about the lm curve, The LM curve  The LM curve ...

The LM curve  The LM curve shows all combinations of R and Y, where the money market is in equilibrium. The LM-curve slopes upwards. Mone

Give examples of a monopoly, Give examples of a monopoly and an example of ...

Give examples of a monopoly and an example of perfect competition. Explain how each of your examples matches the textbook's definition of that market structure. Monopoly-a firm tha

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd