1. Suppose that the required reserve ratio is 9%, currency in circulation is $620 billion, the amount of checkable depos

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1 Suppose That The Required Reserve Ratio Is 9 Currency In Circulation Is 620 Billion The Amount Of Checkable Depos 1 (79.22 KiB) Viewed 40 times

1. Suppose that the required reserve ratio is 9%, currency in circulation is $620 billion, the amount of checkable deposits is $950 billion, and excess reserves are $15 billion. Calculate the money supply, and the money multiplier and interpret your results. 2. If the Fed sells $2 million of bonds to the First National Bank, what happens to reserves and the monetary base? Use T-accounts to explain your answer. 3. Describe how each of the following can affect the money supply: the central bank. Banks. depositors.