Answer to Question #52319 in Macroeconomics for Samiya naseer
a) The monetary base.
b) The banks reserve ratio.
c) Currency drain as a % of deposits
a) The monetary base MB = R + CU = 15 + 30 = AED 45 billion.
b) The banks reserve ratio rr = R/D*100% = 15/300*100% = 5%
c) A currency drain is an increase in currency held outside the banks. Currency drain as a % of deposits is 30/300*100% = 10%.
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!