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Assume that the following data describe the condition of the banking system. Use this information to answer five questions. Total reserves Transactions deposits Cash held by public Reserve requirement Instructions: Enter your responses as a whole number. a. How large is the money supply (M1)? $ billion b. How large are required reserves? $ billion $120 billion $800 billion $300 billion 0.10 c. How large are excess reserves? $ d. What is the money multiplier? billion e. How much is the unused lending capacity? $ billion

Assume that the following data describe the condition of the banking system. Use this information to answer five questions. Total reserves Transactions deposits Cash held by public Reserve requirement Instructions: Enter your responses as a whole number. a. How large is the money supply (M1)? $ billion b. How large are required reserves? $ billion $120 billion $800 billion $300 billion 0.10 c. How large are excess reserves? $ d. What is the money multiplier? billion e. How much is the unused lending capacity? $ billion

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
Problem 16P
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Assume that the following data describe the condition of the banking system. Use this information to answer five questions. Total reserves Transactions deposits Cash held by public Reserve requirement Instructions: Enter your responses as a whole number. a. How large is the money supply (M1)? $ billion b. How large are required reserves? $ $ billion $120 billion $800 billion $300 billion 0.10 c. How large are excess reserves? billion d. What is the money multiplier? e. How much is the unused lending capacity? $ billion
Transcribed Image Text:Assume that the following data describe the condition of the banking system. Use this information to answer five questions. Total reserves Transactions deposits Cash held by public Reserve requirement Instructions: Enter your responses as a whole number. a. How large is the money supply (M1)? $ billion b. How large are required reserves? $ $ billion $120 billion $800 billion $300 billion 0.10 c. How large are excess reserves? billion d. What is the money multiplier? e. How much is the unused lending capacity? $ billion
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