Suppose that the Federal Reserve System set the required reserve ratio equal to 0.3 and that...
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Suppose that the Federal Reserve System set the required reserve ratio equal to 0.3 and that the banking system holds $70 billion in excess reserves. If the amount of deposits is $1000 billion and the amount of currency holdings is $60 billion, then the currency ratio is. (Round your response to the nearest two decimal place.) Referring to part a, the excess reserve ratio is. (Round your response to the nearest two decimal place.) Suppose that the Federal Reserve System set the required reserve ratio equal to 0.3 and that the banking system holds $70 billion in excess reserves. If the amount of deposits is $1000 billion and the amount of currency holdings is $60 billion, then the currency ratio is. (Round your response to the nearest two decimal place.) Referring to part a, the excess reserve ratio is. (Round your response to the nearest two decimal place.)
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