If the desired reserve ratio is one-third, currency in circulation is $300 billion, and chequable deposits are $900 billion, then the money supply is ________.

Name: If the desired reserve ratio is one-third, currency in circulation is $300 billion, and chequable deposits are $900 billion, then the money supply is ________.
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

Quizplus · Accepted Answer

The money supply is the sum of currency in circulation and chequable deposits, which is $300 billion + $900 billion = $1200 billion.

If the Desired Reserve Ratio Is One-Third, Currency in Circulation