Question: Part II Quantitative Problems (20 marks) Show ALL CALCULATIONS. Answers without supporting calculations will be deemed a guess and will NOT receive any credit. If

Part II Quantitative Problems (20 marks) Show ALL CALCULATIONS. Answers without

Part II Quantitative Problems (20 marks) Show ALL CALCULATIONS. Answers without supporting calculations will be deemed a guess and will NOT receive any credit. If the required reserve ratio is 12 percent, currency in circulation is $1,500 million, checkable deposits are $1,600 million, and excess reserves total 530 million, then calculate the following: (round to four decimals) 1. Simple money multiplier Answer: 2. Assume that the initial deposit in a bank is $200. Using the above money multiplier, what is the final increase in money supply? Answer: 3. Currency ratio: Answer: 4. Excess reserve ratio: Answer: 5. True money multiplier: Answer: 6. Total reserve Answer: 7. Monetary base: Answer: 8. Money supply

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