Economy, asked by tanyajhaficdrc, 6 hours ago

(a) Suppose the central bank decides to make Rs.100,000 open market sale. If Hith powered money (H)=Rs.500,000/-, Required reserve ratio(rr)=0.20, Excess reserve ratio(er)=0.05 a nd currency deposit ratio(cd)=0.25, what will be the total currency holdings of the public?

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Answered by pb843621

Answer:

1. (a) Suppose the central bank decides to make Rs. 100,000 open market sale. If high powered money (H) = Rs. 500,000/-, required reserve ratio (rr) 0.20, excess reserve ratio (er) = 0.05 and currency deposit ratio (cd) = 0.25, what will be the total currency holdings of the public? %3D %3D

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