Assume that the following data describe the condition of the commercial banking system: Total Reserves: $200 billion Transactions deposits: $800…
Assume that the following data describe the condition of the commercial banking system: Total Reserves: $200 billion Transactions deposits: $800 billion Cash held by public: $100 billion Reserve requirement: 0.20 a. b. c. d. e. f. How large is the money supply (M1)? Are the banks fully utilizing their lending capacity?
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