Question: Please help answer the following questions: Tutorial: Monetary Sygtem 1. Briey discuss the basic functions of money. 2. According to Keynesian, why people demand for

 Please help answer the following questions: Tutorial: Monetary Sygtem 1. Briey

Please help answer the following questions:

discuss the basic functions of money. 2. According to Keynesian, why people

Tutorial: Monetary Sygtem 1. Briey discuss the basic functions of money. 2. According to Keynesian, why people demand for money? 3. The following is a simplied balance sheet for a hank Liabilities 5m Deposits 100 100 a} TWhat is the cash reserve ratio for this bank? h} Compute the money multiplier value. c} Compute the total money supply with this $ lm of deposit. d} Compute the total credit created from this $lm deposit e} Assume that a new deposit of $1 Um is made into this bank. Compute the change in money supply and credit creation resulting from this new deposit. 1') Describe the effects of the bank increased lending on the level of economic activity in the economy. g} Repeat from part a) e] if required remrve has increased to 111% of deposits? What can you conclude from the increase in required reserve

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