The Agricolan monetary base is 800,000 florins. The public always holds half its money as currency and half as deposits Banks hold 25% of deposits in the form of reserves. Starting with the initial creation of a monetary base that accompanies the purchase by the central bank of 800,000 fl worth of securities from the public, answer the following questions (Hint: Don't forget that the public keeps only half its money in the form of bank deposits and the other half as currency) Fill in the consolidated balance sheet of the banks after they first receive deposits. (Enter all values rounded to the nearest whole number.) Assets Reserves Consolidated Balance Sheet of Banks (fl) Deposits Liabilities

The Agricolan monetary base is 800,000 florins. The public always holds half its money as currency and half as deposits Banks hold 25% of deposits in the form of reserves. Starting with the initial creation of a monetary base that accompanies the purchase by the central bank of 800,000 fl worth of securities from the public, answer the following questions (Hint: Don't forget that the public keeps only half its money in the form of bank deposits and the other half as currency) Fill in the consolidated balance sheet of the banks after they first receive deposits. (Enter all values rounded to the nearest whole number.) Assets Reserves Consolidated Balance Sheet of Banks (fl) Deposits Liabilities

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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