3. Determine the size of the money multiplier when: the ratio of reserves to total deposits
is 10 percent; the ratio of noncheckable deposits to checkable deposits is 30
percent; currency held by the nonbank public is 20 percent of checkable
deposits; and the ratio of government deposits to checkable deposits is 10
percent. Also determine the money supply if the monetary base is $10 million.
4. Discuss the importance of managing the U.S. Treasury’s cash balances in maintaining stable monetary conditions.
5. Describe the techniques used by the Treasury in managing the debt to help achieve an economic climate which would encourage orderly growth and stability.
Categories: