Question

If the monetary base of an economy is
56,000 crores. The required reserve ratio
is 0.1, excess reserves to deposit ratio is
20%, and the public likes to hold 30% of
their deposits in form of currency.
what will be the complete deposit multiplier? ​

Answer 1

Explanation:

If the monetary base of an economy is

56,000 crores. The required reserve ratio

is 0.1, excess reserves to deposit ratio is

20%, and the public likes to hold 30% of

their deposits in form of currency