SlideShare a Scribd company logo
1 of 1
Download to read offline
Assume a financial system has a monetary base of $25 million. The required reserves ratio is 10
percent, and there are no leakages in the system. a. What is the size of the money multiplier? b.
What will be the system's money supply?
Solution
Money multiplier =1/required reserve rate=1/0.10=10
Money supply =change in monetary value *money multiplier = $25*10=$250million

More Related Content

More from archiesgallery

Distinguish between a blastula, a blastomere, a blastopore, and a bla.pdf
Distinguish between a blastula, a blastomere, a blastopore, and a bla.pdfDistinguish between a blastula, a blastomere, a blastopore, and a bla.pdf
Distinguish between a blastula, a blastomere, a blastopore, and a bla.pdfarchiesgallery
 
Compare and contrast an information systems development project in a.pdf
Compare and contrast an information systems development project in a.pdfCompare and contrast an information systems development project in a.pdf
Compare and contrast an information systems development project in a.pdfarchiesgallery
 
can high level language can use an assembler.SolutionHigh-l.pdf
can high level language can use an assembler.SolutionHigh-l.pdfcan high level language can use an assembler.SolutionHigh-l.pdf
can high level language can use an assembler.SolutionHigh-l.pdfarchiesgallery
 
Briefly describe a mechanim of virus entry into the cells and give o.pdf
Briefly describe a mechanim of virus entry into the cells and give o.pdfBriefly describe a mechanim of virus entry into the cells and give o.pdf
Briefly describe a mechanim of virus entry into the cells and give o.pdfarchiesgallery
 
Why are traditional definitions of “interception” problematic when a.pdf
Why are traditional definitions of “interception” problematic when a.pdfWhy are traditional definitions of “interception” problematic when a.pdf
Why are traditional definitions of “interception” problematic when a.pdfarchiesgallery
 
why is it important for macromolecular cellular structures to be fle.pdf
why is it important for macromolecular cellular structures to be fle.pdfwhy is it important for macromolecular cellular structures to be fle.pdf
why is it important for macromolecular cellular structures to be fle.pdfarchiesgallery
 
Widgets ’R Us (WRU) is a medium-sized firm specializing in the desig.pdf
Widgets ’R Us (WRU) is a medium-sized firm specializing in the desig.pdfWidgets ’R Us (WRU) is a medium-sized firm specializing in the desig.pdf
Widgets ’R Us (WRU) is a medium-sized firm specializing in the desig.pdfarchiesgallery
 
Which of the following entities can be homozygous (there may be mor.pdf
Which of the following entities can be homozygous (there may be mor.pdfWhich of the following entities can be homozygous (there may be mor.pdf
Which of the following entities can be homozygous (there may be mor.pdfarchiesgallery
 
Where is the lysosomes locales in the cell Where is the lysosom.pdf
Where is the lysosomes locales in the cell Where is the lysosom.pdfWhere is the lysosomes locales in the cell Where is the lysosom.pdf
Where is the lysosomes locales in the cell Where is the lysosom.pdfarchiesgallery
 
Which of the following is the most specific of security documents.pdf
Which of the following is the most specific of security documents.pdfWhich of the following is the most specific of security documents.pdf
Which of the following is the most specific of security documents.pdfarchiesgallery
 
What is the consequence when a chromosome loses its telomeresSol.pdf
What is the consequence when a chromosome loses its telomeresSol.pdfWhat is the consequence when a chromosome loses its telomeresSol.pdf
What is the consequence when a chromosome loses its telomeresSol.pdfarchiesgallery
 
We usually use when having a conversation with others. left hemisph.pdf
We usually use  when having a conversation with others.  left hemisph.pdfWe usually use  when having a conversation with others.  left hemisph.pdf
We usually use when having a conversation with others. left hemisph.pdfarchiesgallery
 
The security kernel is found at what protection ring levelA. Ring.pdf
The security kernel is found at what protection ring levelA. Ring.pdfThe security kernel is found at what protection ring levelA. Ring.pdf
The security kernel is found at what protection ring levelA. Ring.pdfarchiesgallery
 
The line in the graph shows a relationship between two variables, x a.pdf
The line in the graph shows a relationship between two variables, x a.pdfThe line in the graph shows a relationship between two variables, x a.pdf
The line in the graph shows a relationship between two variables, x a.pdfarchiesgallery
 
Question (Uniform Distribition) The uniform distribution is the sim.pdf
Question (Uniform Distribition) The uniform distribution is the sim.pdfQuestion (Uniform Distribition) The uniform distribution is the sim.pdf
Question (Uniform Distribition) The uniform distribution is the sim.pdfarchiesgallery
 
Radio-frequency identification (RFID) uses electronic tags and label.pdf
Radio-frequency identification (RFID) uses electronic tags and label.pdfRadio-frequency identification (RFID) uses electronic tags and label.pdf
Radio-frequency identification (RFID) uses electronic tags and label.pdfarchiesgallery
 
psychology! pathology!1. which of the following is not one of the .pdf
psychology! pathology!1. which of the following is not one of the .pdfpsychology! pathology!1. which of the following is not one of the .pdf
psychology! pathology!1. which of the following is not one of the .pdfarchiesgallery
 
An approach that utilizes averages to determine value is calledS.pdf
An approach that utilizes averages to determine value is calledS.pdfAn approach that utilizes averages to determine value is calledS.pdf
An approach that utilizes averages to determine value is calledS.pdfarchiesgallery
 
A decedent owned 300 shares of closely held XYZ stock jointly with h.pdf
A decedent owned 300 shares of closely held XYZ stock jointly with h.pdfA decedent owned 300 shares of closely held XYZ stock jointly with h.pdf
A decedent owned 300 shares of closely held XYZ stock jointly with h.pdfarchiesgallery
 
3. What is meant by a differentiated cell How do cells become di.pdf
3. What is meant by a differentiated cell How do cells become di.pdf3. What is meant by a differentiated cell How do cells become di.pdf
3. What is meant by a differentiated cell How do cells become di.pdfarchiesgallery
 

More from archiesgallery (20)

Distinguish between a blastula, a blastomere, a blastopore, and a bla.pdf
Distinguish between a blastula, a blastomere, a blastopore, and a bla.pdfDistinguish between a blastula, a blastomere, a blastopore, and a bla.pdf
Distinguish between a blastula, a blastomere, a blastopore, and a bla.pdf
 
Compare and contrast an information systems development project in a.pdf
Compare and contrast an information systems development project in a.pdfCompare and contrast an information systems development project in a.pdf
Compare and contrast an information systems development project in a.pdf
 
can high level language can use an assembler.SolutionHigh-l.pdf
can high level language can use an assembler.SolutionHigh-l.pdfcan high level language can use an assembler.SolutionHigh-l.pdf
can high level language can use an assembler.SolutionHigh-l.pdf
 
Briefly describe a mechanim of virus entry into the cells and give o.pdf
Briefly describe a mechanim of virus entry into the cells and give o.pdfBriefly describe a mechanim of virus entry into the cells and give o.pdf
Briefly describe a mechanim of virus entry into the cells and give o.pdf
 
Why are traditional definitions of “interception” problematic when a.pdf
Why are traditional definitions of “interception” problematic when a.pdfWhy are traditional definitions of “interception” problematic when a.pdf
Why are traditional definitions of “interception” problematic when a.pdf
 
why is it important for macromolecular cellular structures to be fle.pdf
why is it important for macromolecular cellular structures to be fle.pdfwhy is it important for macromolecular cellular structures to be fle.pdf
why is it important for macromolecular cellular structures to be fle.pdf
 
Widgets ’R Us (WRU) is a medium-sized firm specializing in the desig.pdf
Widgets ’R Us (WRU) is a medium-sized firm specializing in the desig.pdfWidgets ’R Us (WRU) is a medium-sized firm specializing in the desig.pdf
Widgets ’R Us (WRU) is a medium-sized firm specializing in the desig.pdf
 
Which of the following entities can be homozygous (there may be mor.pdf
Which of the following entities can be homozygous (there may be mor.pdfWhich of the following entities can be homozygous (there may be mor.pdf
Which of the following entities can be homozygous (there may be mor.pdf
 
Where is the lysosomes locales in the cell Where is the lysosom.pdf
Where is the lysosomes locales in the cell Where is the lysosom.pdfWhere is the lysosomes locales in the cell Where is the lysosom.pdf
Where is the lysosomes locales in the cell Where is the lysosom.pdf
 
Which of the following is the most specific of security documents.pdf
Which of the following is the most specific of security documents.pdfWhich of the following is the most specific of security documents.pdf
Which of the following is the most specific of security documents.pdf
 
What is the consequence when a chromosome loses its telomeresSol.pdf
What is the consequence when a chromosome loses its telomeresSol.pdfWhat is the consequence when a chromosome loses its telomeresSol.pdf
What is the consequence when a chromosome loses its telomeresSol.pdf
 
We usually use when having a conversation with others. left hemisph.pdf
We usually use  when having a conversation with others.  left hemisph.pdfWe usually use  when having a conversation with others.  left hemisph.pdf
We usually use when having a conversation with others. left hemisph.pdf
 
The security kernel is found at what protection ring levelA. Ring.pdf
The security kernel is found at what protection ring levelA. Ring.pdfThe security kernel is found at what protection ring levelA. Ring.pdf
The security kernel is found at what protection ring levelA. Ring.pdf
 
The line in the graph shows a relationship between two variables, x a.pdf
The line in the graph shows a relationship between two variables, x a.pdfThe line in the graph shows a relationship between two variables, x a.pdf
The line in the graph shows a relationship between two variables, x a.pdf
 
Question (Uniform Distribition) The uniform distribution is the sim.pdf
Question (Uniform Distribition) The uniform distribution is the sim.pdfQuestion (Uniform Distribition) The uniform distribution is the sim.pdf
Question (Uniform Distribition) The uniform distribution is the sim.pdf
 
Radio-frequency identification (RFID) uses electronic tags and label.pdf
Radio-frequency identification (RFID) uses electronic tags and label.pdfRadio-frequency identification (RFID) uses electronic tags and label.pdf
Radio-frequency identification (RFID) uses electronic tags and label.pdf
 
psychology! pathology!1. which of the following is not one of the .pdf
psychology! pathology!1. which of the following is not one of the .pdfpsychology! pathology!1. which of the following is not one of the .pdf
psychology! pathology!1. which of the following is not one of the .pdf
 
An approach that utilizes averages to determine value is calledS.pdf
An approach that utilizes averages to determine value is calledS.pdfAn approach that utilizes averages to determine value is calledS.pdf
An approach that utilizes averages to determine value is calledS.pdf
 
A decedent owned 300 shares of closely held XYZ stock jointly with h.pdf
A decedent owned 300 shares of closely held XYZ stock jointly with h.pdfA decedent owned 300 shares of closely held XYZ stock jointly with h.pdf
A decedent owned 300 shares of closely held XYZ stock jointly with h.pdf
 
3. What is meant by a differentiated cell How do cells become di.pdf
3. What is meant by a differentiated cell How do cells become di.pdf3. What is meant by a differentiated cell How do cells become di.pdf
3. What is meant by a differentiated cell How do cells become di.pdf
 

Recently uploaded

Personalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes GuàrdiaPersonalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes GuàrdiaEADTU
 
How to Manage Website in Odoo 17 Studio App.pptx
How to Manage Website in Odoo 17 Studio App.pptxHow to Manage Website in Odoo 17 Studio App.pptx
How to Manage Website in Odoo 17 Studio App.pptxCeline George
 
OSCM Unit 2_Operations Processes & Systems
OSCM Unit 2_Operations Processes & SystemsOSCM Unit 2_Operations Processes & Systems
OSCM Unit 2_Operations Processes & SystemsSandeep D Chaudhary
 
Basic Civil Engineering notes on Transportation Engineering & Modes of Transport
Basic Civil Engineering notes on Transportation Engineering & Modes of TransportBasic Civil Engineering notes on Transportation Engineering & Modes of Transport
Basic Civil Engineering notes on Transportation Engineering & Modes of TransportDenish Jangid
 
Book Review of Run For Your Life Powerpoint
Book Review of Run For Your Life PowerpointBook Review of Run For Your Life Powerpoint
Book Review of Run For Your Life Powerpoint23600690
 
SPLICE Working Group: Reusable Code Examples
SPLICE Working Group:Reusable Code ExamplesSPLICE Working Group:Reusable Code Examples
SPLICE Working Group: Reusable Code ExamplesPeter Brusilovsky
 
How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17Celine George
 
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...Nguyen Thanh Tu Collection
 
MOOD STABLIZERS DRUGS.pptx
MOOD     STABLIZERS           DRUGS.pptxMOOD     STABLIZERS           DRUGS.pptx
MOOD STABLIZERS DRUGS.pptxPoojaSen20
 
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...Nguyen Thanh Tu Collection
 
PSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptxPSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptxMarlene Maheu
 
8 Tips for Effective Working Capital Management
8 Tips for Effective Working Capital Management8 Tips for Effective Working Capital Management
8 Tips for Effective Working Capital ManagementMBA Assignment Experts
 
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdfFICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdfPondicherry University
 
The Story of Village Palampur Class 9 Free Study Material PDF
The Story of Village Palampur Class 9 Free Study Material PDFThe Story of Village Palampur Class 9 Free Study Material PDF
The Story of Village Palampur Class 9 Free Study Material PDFVivekanand Anglo Vedic Academy
 
How to Send Pro Forma Invoice to Your Customers in Odoo 17
How to Send Pro Forma Invoice to Your Customers in Odoo 17How to Send Pro Forma Invoice to Your Customers in Odoo 17
How to Send Pro Forma Invoice to Your Customers in Odoo 17Celine George
 
Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...EduSkills OECD
 
Spring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community PartnershipsSpring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community Partnershipsexpandedwebsite
 
UChicago CMSC 23320 - The Best Commit Messages of 2024
UChicago CMSC 23320 - The Best Commit Messages of 2024UChicago CMSC 23320 - The Best Commit Messages of 2024
UChicago CMSC 23320 - The Best Commit Messages of 2024Borja Sotomayor
 

Recently uploaded (20)

Personalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes GuàrdiaPersonalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes Guàrdia
 
How to Manage Website in Odoo 17 Studio App.pptx
How to Manage Website in Odoo 17 Studio App.pptxHow to Manage Website in Odoo 17 Studio App.pptx
How to Manage Website in Odoo 17 Studio App.pptx
 
OSCM Unit 2_Operations Processes & Systems
OSCM Unit 2_Operations Processes & SystemsOSCM Unit 2_Operations Processes & Systems
OSCM Unit 2_Operations Processes & Systems
 
Basic Civil Engineering notes on Transportation Engineering & Modes of Transport
Basic Civil Engineering notes on Transportation Engineering & Modes of TransportBasic Civil Engineering notes on Transportation Engineering & Modes of Transport
Basic Civil Engineering notes on Transportation Engineering & Modes of Transport
 
Book Review of Run For Your Life Powerpoint
Book Review of Run For Your Life PowerpointBook Review of Run For Your Life Powerpoint
Book Review of Run For Your Life Powerpoint
 
SPLICE Working Group: Reusable Code Examples
SPLICE Working Group:Reusable Code ExamplesSPLICE Working Group:Reusable Code Examples
SPLICE Working Group: Reusable Code Examples
 
Mattingly "AI and Prompt Design: LLMs with NER"
Mattingly "AI and Prompt Design: LLMs with NER"Mattingly "AI and Prompt Design: LLMs with NER"
Mattingly "AI and Prompt Design: LLMs with NER"
 
How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17
 
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...
 
MOOD STABLIZERS DRUGS.pptx
MOOD     STABLIZERS           DRUGS.pptxMOOD     STABLIZERS           DRUGS.pptx
MOOD STABLIZERS DRUGS.pptx
 
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
 
Supporting Newcomer Multilingual Learners
Supporting Newcomer  Multilingual LearnersSupporting Newcomer  Multilingual Learners
Supporting Newcomer Multilingual Learners
 
PSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptxPSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptx
 
8 Tips for Effective Working Capital Management
8 Tips for Effective Working Capital Management8 Tips for Effective Working Capital Management
8 Tips for Effective Working Capital Management
 
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdfFICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
 
The Story of Village Palampur Class 9 Free Study Material PDF
The Story of Village Palampur Class 9 Free Study Material PDFThe Story of Village Palampur Class 9 Free Study Material PDF
The Story of Village Palampur Class 9 Free Study Material PDF
 
How to Send Pro Forma Invoice to Your Customers in Odoo 17
How to Send Pro Forma Invoice to Your Customers in Odoo 17How to Send Pro Forma Invoice to Your Customers in Odoo 17
How to Send Pro Forma Invoice to Your Customers in Odoo 17
 
Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...
 
Spring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community PartnershipsSpring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community Partnerships
 
UChicago CMSC 23320 - The Best Commit Messages of 2024
UChicago CMSC 23320 - The Best Commit Messages of 2024UChicago CMSC 23320 - The Best Commit Messages of 2024
UChicago CMSC 23320 - The Best Commit Messages of 2024
 

Assume a financial system has a monetary base of $25 million. The re.pdf

  • 1. Assume a financial system has a monetary base of $25 million. The required reserves ratio is 10 percent, and there are no leakages in the system. a. What is the size of the money multiplier? b. What will be the system's money supply? Solution Money multiplier =1/required reserve rate=1/0.10=10 Money supply =change in monetary value *money multiplier = $25*10=$250million