Business, 24.03.2020 02:37 liluzisquirt7378

. 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

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Answer from: jesh0975556

Suppose that the required reserve ratio is 9% and the currency in circulation is $620 billion.

a. The money supply is $1570 Billion.

b. The currency deposit ratio is 65.26%.

c. The excess reserves ratio is 1.58%.

d. The money multiplier is 2.18.

a. Money supply

Money supply= Currency in circulation + Checkable deposits.

Money supply= 620 Billion + 950 Billion

Money supply= $1570 Billion

b. Currency deposit ratio

Currency deposit ratio= Currency in circulation / Checkable deposits

Currency deposit ratio= 620 Billion / 950 Billion×100

Currency deposit ratio= 65.26%

c. Excess reserve ratio

Excess reserve ratio = Excess reserves / Checkable deposits

Excess reserve ratio = 15 Billion / 950 Billion×100

Excess reserve ratio =1.58%

d. Money Multipliers

Money Multipliers = (1+0.6526) / (0.09+0.0158+0.6526)

Money Multipliers=1.6526/0.7584

Money Multipliers=2.179

Money Multipliers=2.18 (Approximately)

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Answer from: karmaxnagisa20

Money supply (M) = $1,570 Billion

Money multiplier (m) = 2.18

Excess reserve ratio (e) = 0.016

Explanation:

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.

(a)Calculate the money supply, the currency deposit ratio, the excess reserve ratio,

and the money multiplier.

Given:

r = required reserve ratio = 0.9

C = currency in circulation = $ 620 B

D = checkable deposits = $ 950 B

ER = excess reserves = $ 15 B

Money supply (M) = currency in circulation + checkable deposits = $620 B + $950 B = $1,570 Billion

Money multiplier (m) = $\frac{1+c}{r+c+e}$

c = C/D = ($620 B)/($950 B) = 0.653

e = ER/D = ($15 B)/($950 B) = 0.016

Therefore Money multiplier (m) = $\frac{1+c}{r+c+e}=\frac{1+0.653}{0.653+0.016+0.09}=\frac{1.653}{0.759} =2.18\\$

Excess reserve ratio (e) = ER/D = ($15 B)/($950 B) = 0.016

Answer from: Quest

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.

Answer from: Quest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

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