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Finance

You are given the following information:

required reserve ratio ............................................. 0.2

deposits(cheques) ..................................................... 400 trillion

currency in circulation ........................................ 600 trillion

excess reserves ....................................................... 400 billion

Required:

a) calculate the aggregate money supply

b) calculate the money multiplier

c) briefly explain the meaning of the results in (b) above.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92779222

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