The money supply is 2,000 of which 500 is currency held by the public. Bank reserves are 150. The existing reserve/deposit ratio equals:

Name: The money supply is 2,000 of which 500 is currency held by the public. Bank reserves are 150. The existing reserve/deposit ratio equals:
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Since the money supply is deposits plus the currency held by the public, deposits here must be 1,500 (2,000 - 500). Since reserves are 150, the existing reserve/deposit ratio equals .10 (150 / 1,500).

The Money Supply Is 2,000 of Which 500 Is Currency