Assuming $2 billion in gold reserves at the Central Bank, if the Central Bank holds reserves of 20% and the commercial banking system holds reserves of 15%, what will be the ratio of gold reserves to commercial bank notes and deposits? Assuming $3 billion in gold reserves, if the Central Bank holds reserves of 50% and the commercial banking system holds reserves of 10%, what will be the ratio of gold reserves to commercial bank notes and deposits? Make the balance sheets of the Central Bank and the commercial banking system based on the numbers given in question 2 above.

Assuming $2 billion in gold reserves at the Central Bank, if the Central Bank holds reserves of 20% and the commercial banking system holds reserves of 15%, what will be the ratio of gold reserves to commercial bank notes and deposits? Assuming $3 billion in gold reserves, if the Central Bank holds reserves of 50% and the commercial banking system holds reserves of 10%, what will be the ratio of gold reserves to commercial bank notes and deposits? Make the balance sheets of the Central Bank and the commercial banking system based on the numbers given in question 2 above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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