Calculate the value of the money multiplier in each of the following situations: Banks hold no excess reserves, the required reserve ratio is 100%, and households and firms hold currency and deposits in equal amounts. The value of the money multiplier is 1. (Enter your response as a whole number.) The required reserve ratio is 0, banks hold reserves equal to the value of their deposits, and households and firms hold half as much in currency as in deposits. The value of the money multiplier is 1. (Enter your response as a whole number.) The required reserve ratio is 0, households and firms hold twice as much in currency as in deposits, and banks hold reserves equal to one-quarter the value of their deposits. The value of the money multiplier is (Round your response to two decimal places.)

The Federal Reserve and the money supply Suppose the money supply (as measured by checkable deposits) is currently $300 billion. The required reserve ratio is 25%. Banks hold $75 billion in reserves, so there are no excess reserves.   The Federal Reserve (“the Fed”) wants to decrease the money supply by $32 billion, to $268 billion. It could do this through open-market operations or by changing the required reserve ratio. Assume for this question that you can use the simple money multiplier.   If the Fed wants to decrease the money supply using open-market operations, it should   ______(buy/sell) $_________    billion worth of U.S. government bonds.   If the Fed wants to decrease the money supply by adjusting the required reserve ratio, it should ______(increase/decrease)   the required reserve ratio. THis is one question . please answer with an explanation.

A bank holds $10 for every $100 in deposits. The bank wants to hold $9 for every $100 in deposits. The bank holds actual reserves of $22,000 and desired reserves of $13,000. What is the actual reserve ratio, the desired reserve ratio, and the excess reserves? >>> Answer to 2 decimal places. The actual reserve ratio is The desired reserve ratio is The excess reserves are $

its about economics. 8. The reserve requirement, open market operations, and the money supply Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. To simplify the analysis, suppose the banking system has total reserves of $500. Determine the money multiplier and the money supply for each reserve requirement listed in the following table. Reserve Requirement Simple Money Multiplier Money Supply (Percent) (Dollars) 25    options (1,2.5,4,10,25)     Options(500,1250,2000,5000,12500) 10     options(1, 2.5,4,10,25)     options(500,1250,2000,5000,12500)   A higher reserve requirement is associated with a _______(larger, smaller)   money supply.   Suppose the Federal Reserve wants to increase the money supply by $100. Again, you can assume that banks do not hold excess reserves and that households do not hold currency. If the reserve requirement is 10%, the Fed will use…

The reserve requirement, open market operations, and the moneysupply Consider a system of banking in which the Federal Reserve uses required reserves to control the money supply (as was the case in the United States before 2008). Assume that banks do not hold excess reserves and that households do not hold currency, so the only money exists in the form of demand deposits. To further simplify, assume the banking system has total reserves of $300. Determine the money multiplier as well as the money supply for each reserve requirement listed in the following table.   Reserve Requirement Simple Money Multiplier Money Supply (Percent)   5     (0.5, 1, 5, 10 or 20) (150, 300, 1500, 3000 or 6000)     10     (0.5, 1, 5, 10 or 20)   (150, 300, 1500, 3000 or 6000)    A higher reserve requirement is associated with a (LARGER or SMALLER) money supply.   Suppose the Federal Reserve wants to increase the money supply by $200. Maintain the assumption that banks do not…

Suppose the Federal Reserve conducts an open market purchase from a bank for $300 million. Assuming the required reserve ratio is 10%, what would be the effect on the money supply in each of the following situations? If there are many banks, all of which make loans for the full amount of their excess reserves, the money supply will increase by $ million. (Enter your response as a whole number.)

Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. To simplify the analysis, suppose the banking system has total reserves of $200. Determine the money multiplier and the money supply for each reserve requirement listed in the following table. Reserve Requirement Simple Money Multiplier Money Supply (Percent) (Dollars) 25           10

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Currency in Circulation (October 2020) 40.5 billion Nigerian currency Reserves (October 2020) 34.2 billion Nigeriancurrency M1 (October 2020) 2,465.9 billion Nigeriancurrency M2 (October 2020) 2,638.8 billion Nigeriancurrency Calculate the size of the actual money (M2) multiplier in October 2020.  Round your answer to one decimal place.   Nigeria's central bank, N. Bank, has not set a required reserve ratio (you can treat the required reserve ratio as 0%).  Calcuate the excess reserve ratio for Norway in October 2020.  Enter your answer in percent form without the percent sign.  Round to one decimal place.

Suppose the Federal Reserve increases the amount of reserves by $150 million and the total money supply increases by $600 million.   Instructions: Enter your answers as a whole number.   a. What is the money multiplier?            b. Using the money multiplier from part a, how much will the money supply change if the Federal Reserve increases reserves by $40 million?        $  million