Question: 2. Consider the following data (all values are in billions of dollars): Currency Checkable deposits Bank reserves June 1930 $3.681 21.612 3.227 June 1931 $3.995

2. Consider the following data (all values are in billions of

2. Consider the following data (all values are in billions of dollars): Currency Checkable deposits Bank reserves June 1930 $3.681 21.612 3.227 June 1931 $3.995 19.888 3.307 June 1932 $4.959 15.490 2.829 You can assume the required reserve rate is 10%. Calculate the values for each period for the currency to-deposit ratio, the ratio of total reserves to deposits, the monetary base, the money multiplier, and the M1 money supply. Can you explain why the currency-to- deposit ratio and the ratio of total reserves to deposits moved as they did between 1930 and 1932? (10 points) 2. Consider the following data (all values are in billions of dollars): Currency Checkable deposits Bank reserves June 1930 $3.681 21.612 3.227 June 1931 $3.995 19.888 3.307 June 1932 $4.959 15.490 2.829 You can assume the required reserve rate is 10%. Calculate the values for each period for the currency to-deposit ratio, the ratio of total reserves to deposits, the monetary base, the money multiplier, and the M1 money supply. Can you explain why the currency-to- deposit ratio and the ratio of total reserves to deposits moved as they did between 1930 and 1932? (10 points)

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