17124.PDF 8 go Q 100% O i. The money supply e) Assume a very simple...

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17124.PDF 8 go □ Q 100% O i. The money supply e) Assume a very simple banking system where an initial deposit of $5,000 is made. The cash reserve ratio observed by all banks is 10% of deposits. There are no cash leakages or excess reserves held by banks. Calculate: 2 / 3 TT 31 1 mark Page 6 of 7 ii. Of the amount calculated for money supply in part i), calculate how much would be the cash reserve? 3 marks 4 marks iii. Of the amount calculated for money supply in part i), how much represents credit created? 3 marks 5 Ć Apr 30 1:57 + X : 0 17124.PDF 8 go □ Q 100% O i. The money supply e) Assume a very simple banking system where an initial deposit of $5,000 is made. The cash reserve ratio observed by all banks is 10% of deposits. There are no cash leakages or excess reserves held by banks. Calculate: 2 / 3 TT 31 1 mark Page 6 of 7 ii. Of the amount calculated for money supply in part i), calculate how much would be the cash reserve? 3 marks 4 marks iii. Of the amount calculated for money supply in part i), how much represents credit created? 3 marks 5 Ć Apr 30 1:57 + X : 0

Answer rating: 100% (QA)

i The money supply The money supply M can be calculated using the mone... View the full answer