If the required reserve ratio is one-third,currency in circulation is $300 billion,checkable deposits are $900 billion,and there is no excess reserve,then the monetary base is

Question

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The formula for the monetary base is:
Monetary Base = Currency in Circulation + Reserves
We are given that the required reserve ratio is one-third, which means that banks must hold reserves equal to one-third of their checkable deposits. Therefore, reserves will be equal to (1/3) * $900 billion = $300 billion.
Now, we can use the formula for the monetary base to calculate it as follows:
Monetary Base = $300 billion (reserves) + $300 billion (currency in circulation) = $600 billion. 
Therefore, the monetary base is $600 billion.

If the Required Reserve Ratio Is One-Third,currency in Circulation Is