How to calculate those problems? 1. The monetary base (H) is $ 1,000; the currency ratio is
Question:
How to calculate those problems?
1. The monetary base (H) is $ 1,000; the currency ratio is 25 per cent; the reserve ratio is 10 per cent. What is the dollar amount of deposits?
| Not more than $ 3,000 | ||
| More than $ 3,000 but not more than $ 3,250 | ||
| More than $ 3,250 but not more than $ 3,500 | ||
| More than $ 3,500 |
2. The monetary base (H) is $ 1,000; the currency ratio is 40 per cent; the reserve ratio is 25 per cent. What is the total amount of loans?
| More than $ 2250 | ||
| More than $ 2000, but not more than $ 2250 | ||
| More than $ 1500, but not more than $ 1750 | ||
| Not more than $ 1500 |
3.
The monetary base (H) is $ 1,000; the currency ratio is 25 per cent; the reserve ratio is 10 per cent. What is the dollar amount of reserves?
| Not more than $ 250 | ||
| More than $ 250 but not more than $ 300 | ||
| More than $ 300 but not more than $ 350 | ||
| More than $ 300 |
4. The monetary base (H) is $ 1,000; the currency ratio is 40 per cent; the reserve ratio is 25 per cent. What is the total amount of reserves?
| More than $ 225 | ||
| More than $ 200, but not more than $ 225 | ||
| More than $ 150, but not more than $ 175 | ||
| Not more than $ 150 |
Expert Answer:
The detailed answer for the above question is provided below 1 To calculate the dollar amount of deposits we can use the formula for the money multipl... View the full answer
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
