The money supply is 1,500 of which 500 is currency held by the public. Bank reserves are 200. The existing reserve/deposit ratio equals:

Name: The money supply is 1,500 of which 500 is currency held by the public. Bank reserves are 200. 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 1,000 (1,500 - 500). Since reserves are 200, the existing reserve/deposit ratio equals .20 (200 / 1,000).

The Money Supply Is 1,500 of Which 500 Is Currency