Question: Check my work Value Total reserves : $ 75 billion Transactions deposits: $ 1,000 billion Cash held by public: $ 500 billion Bonds held by

Check my work Value Total reserves : $ 75 billion Transactions deposits: $ 1,000 billion Cash held by public: $ 500 billion Bonds held by public: 700 billion Stocks held by public: $ 195 billion Gross domestic product: $ 8 trillion Interest rate: 4 percent Required reserve ratio: 0.07 Instructions: In parts a and b, enter your responses as a whole number. In parts c and d, round your responses to two decim places. a. How large is the money supply (M1)? $ billion b. How much excess reserves are there? $ billion c. What is the money multiplier? d. What is the available lending capacity of the banking system? $ billion 485 APR 25 MacBook Pro C G Search or type URL + % & W # 4 5 8 9 O W E R T Y U O

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