Use the following data for an economy that has only two banks, Bank A and Bank B. Partial balance sheet information is given for each bank below:
Bank A: Reserves on hand $65,000 Deposit in the Fed $40,000 US government bonds $10,000 Checking account balances $120,000 Savings account balances $30,000
Bank B: Cash in the bank $15,000 US government bonds $8000 Deposit in the Fed $50,000 Savings account balances $25,000 Checking account balances $100,000 In addition, people in this economy hold $4400 in cash, and all banks have the same reserve requirements of 10%.
Calculate this economy's monetary base, carefully following all numeric instructions.
Calculate this economy's M1 money supply, using the simplified definition, carefully following all numeric instructions.
Calculate the (economy-wide) currency ratio. Enter your answer in decimal format (not percent), carefully following all numeric instructions, rounding to three decimal places. For example, if you get 0.49823, enter only 0.498 in the blank.
Calculate the real-world multiplier for the whole economy, carefully following all numeric instructions. Enter your answer in decimal format (not percent), carefully following all numeric instructions, rounding intermediate and final steps to three decimal places. For example, if you get 0.49823, enter only 0.498 in the blank.