QUESTION 4 Below is the initial balance sheet of Rakyat Bank Berhad Assets Cash Loans Total 250 Customers deposit 750 1000 Total Liabilities a) What is the bank's cash ratio? b) Calculate the money multiplier. c) Calculate total money supply. d) Calculate total credit that can be created. 1000 1000 e) If the central bank increased the reserve requirement to 30%, calculate the total money supply. Has the money supply increased or decreased?

QUESTION 4 Below is the initial balance sheet of Rakyat Bank Berhad Assets Cash Loans Total 250 Customers deposit 750 1000 Total Liabilities a) What is the bank's cash ratio? b) Calculate the money multiplier. c) Calculate total money supply. d) Calculate total credit that can be created. 1000 1000 e) If the central bank increased the reserve requirement to 30%, calculate the total money supply. Has the money supply increased or decreased?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter27: Money And Banking

Section: Chapter Questions

Problem 31P: Humongous Bank is the only bank in the economy. The people in this economy have 20 million in money,...

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