Respuesta :
The money supply in econland is 900, and currency held by the public equals bank reserves. the desired reserve-deposit ratio stands at 0.125. bank reserves equal 200.
What is Money supply?
The amount of money in circulation at any given time is referred to as the money supply. There are many ways to define "money," but common measurements often include circulation-level money and demand deposits. The total amount of money—cash, coins, and balances in bank accounts—in circulation is known as the money supply.
Data on the country's money supply is periodically gathered, noted, and published, usually by the central bank or government. On a weekly and monthly basis, the Federal Reserve in the United States measures and makes public the total quantity of M1 and M2 money supply.
The percentage of deposits that authorities mandate a bank maintain in reserves and refrain from lending out is known as the mandated reserve ratio. If the required reserve ratio is 1 to 10, a bank can lend out $0.90 of every $1, but must hold $0.10 of every dollar on deposit in reserves.
Hence, The money supply in econland is 900, and currency held by the public equals bank reserves. the desired reserve-deposit ratio stands at 0.125. bank reserves equal 200.
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