Calculate the banks desired reserve ratio and the currency drain ratio (as percentages). In the economy of

Question:

Calculate the banks’ desired reserve ratio and the currency drain ratio (as percentages). In the economy of Nocoin, banks have deposits of $300 billion. Their reserves are $15 billion, two thirds of which is in deposits with the central bank. Households and firms hold $30 billion in bank notes. There are no coins!
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: