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If the price of the money multiplier (mm) is 2 and the ratio of cash to deposits (c) is 0.6, find the percentage of obli

Posted: Thu May 19, 2022 9:02 am
by answerhappygod
If the price of the money multiplier (mm) is 2 and the ratio of
cash to deposits (c) is 0.6, find the percentage of obligatory
deposits (rr) of the commercial banks to the central bank. Assuming
that the policy that the commercial banks follow is not to keep any
free available (er=0%). Solve and choose one of the following: a.
0.2, b. 0.3, c. 1.4, d. 1.2