If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the monetary base is.

Respuesta :

The monetary base is:

C= Currently

=$400 billion

r = reserve ratio     = 0.10

D = check deponit    =$1000 billion

ER= Excel reserve     =$1 trillion

By using formula

MB = <+ (RDX) +ER

= $400+ (0. 10x1000) +4 billion

=$501

The monetary fee is the amount that would be paid in cash for an asset or carrier if it were to be sold to a third party. For instance, tangible belongings, intangible assets, labor, and commodities are priced at their economic value.

Financial objects are belongings or liabilities that have a hard and fast price, such as coins or debt. These gadgets, which include $25,000 in cash, have a set cost despite the fact that inflation and different macroeconomic elements may have an effect on buying power.

Economic refers back to the delivery of money, or the quantity there to spend. Monetary implies the budget, or how the money could be spent. Economic coverage entails manipulating interest prices and the cash supply and is the job of the Federal Open market Committee (FOMC).

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