Business
Business, 24.03.2020 16:29, ziar7176

Consider the following situations: a. Bank reserves are $250, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.25. Find deposits and the money supply. Instructions: Enter your responses as whole numbers. Deposits: $ . Money supply: $ . b. The money supply is $600 and currency held by the public equals bank reserves. The desired reserve-deposit ratio is 0.25. Find currency held by the public and bank reserves. Instructions: Enter your responses as whole numbers. Currency held by the public: $ . Bank reserves: $ . c. The money supply is $1,400, of which $500 is currency held by the public. Bank reserves are $90. Find the desired reserve-deposit ratio. Instructions: Enter your response rounded to two decimal places. Desired reserve-deposit ratio: .

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