Answer to Question #49536 in Macroeconomics for Rima
a) The monetary base.
b) The banks’ reserve ratio.
c) Currency drain as a % of deposits.
Total reserves - 15 billion,
Required reserves - 2/3*15 = 10 billion
Notes outside the banks - 30 billion
a) The monetary base is M = 300 + 15 + 30 = AED 345 billion
b) The banks’ reserve ratio rr = 10/300 = 0.033 or 3.3%
c) Currency drain as a % of deposits is 30/300 = 0.1 or 10%
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