Suppose that the reserve ratio for checkable deposits is 0.10, the reserve ratio for savings and time deposits is 0.05, the level of currency held by the public is 365, the level of checkable deposits is 424, the level of savings and time deposits is 1505, the level of money market mutual funds is 808, and the level of excess reserves is 25. Then the e ratio is a. 365/424 O b. 25/424 c. 365/(424 + 1505) d. 25/(424 + 1505) O e. 1 (0.10+ 0.05)

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Money, Banking And The Financial System
Section: Chapter Questions
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Suppose that
the reserve ratio for checkable deposits is 0.10,
the reserve ratio for savings and time deposits is 0.05,
the level of currency held by the public is 365,
the level of checkable deposits is 424,
the level of savings and time deposits is 1505,
the level of money market mutual funds is 808,
and the level of excess reserves is 25.
Then the e ratio is
O a. 365/424
b. 25/424
O c. 365/(424 + 1505)
d. 25/(424 + 1505)
e. 1 - (0.10+ 0.05)
Transcribed Image Text:Suppose that the reserve ratio for checkable deposits is 0.10, the reserve ratio for savings and time deposits is 0.05, the level of currency held by the public is 365, the level of checkable deposits is 424, the level of savings and time deposits is 1505, the level of money market mutual funds is 808, and the level of excess reserves is 25. Then the e ratio is O a. 365/424 b. 25/424 O c. 365/(424 + 1505) d. 25/(424 + 1505) e. 1 - (0.10+ 0.05)
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