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In an economy, currency currently held by the public amounted $6,500Million
held by authorised institutions amounted $3,500Million
Suppose the public holds $1 currency in hands for every $50 bank deposits
banks keep $3 for every $100 bank deposits as excess reserve
The minimum reserve ratio is 20%
1)Max. possible amount of money supply is $40,800Million
2)Max. possible amount of bank deposits is $60,000Million
3)After the multiple deposit creation/contraction, the amount of reserves held by banks is $9,200Million
4)After the multiple deposit creation/contraction, the amount of cash held by the public is $1,200Million
點解 1,3 係岩的 |
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