Belvis Credit Union (BCU) is a financial institution that operates in Puerto Rico and reports $865 in loans, bonds of $245, cash of $210, inventory of $155, account receivable of $525, and a reserve of $395. For liabilities, it registers notes payable of $472.5, $1,382.5 in deposits, accounts payable of $200, and income tax payable of $340. Due to the healthy operation of BCU, the Federal Reserve Bank System of the United States (FED) decides to require a reserve requirement of $168.7. How much is the final money multiplier? (Please, use the reserve requirement rate of two decimal places calculated on the problem before, and round the answer of the money multiplier to one decimal place.)

Belvis Credit Union (BCU) is a financial institution that operates in Puerto Rico and reports $865 in loans, bonds of $245, cash of $210, inventory of $155, account receivable of $525, and a reserve of $395. For liabilities, it registers notes payable of $472.5, $1,382.5 in deposits, accounts payable of $200, and income tax payable of $340. Due to the healthy operation of BCU, the Federal Reserve Bank System of the United States (FED) decides to require a reserve requirement of $168.7. How much is the final money multiplier? (Please, use the reserve requirement rate of two decimal places calculated on the problem before, and round the answer of the money multiplier to one decimal place.)

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter14: Money And Banking

Section14.2: History Of Americans Money And Banking

Problem 2R

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