(Answered) Assume the following data describe the condition of the

Economics

Assume the following data describe the condition of the banking system:

Total reserve $200 billion

Transactions deposits $800 billion

Cash held by public $100 billion

Reserve Requirement 0.20

How large is the MI money supply?

How large are required reserve?

How large are excess reserve?

By how much could the banks increase their lending activities?

What will be the total effect on the M3 money supply?

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Microeconomics, Economics

Category:- Microeconomics
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