What is the money supply, The initial money supply is

What is the money supply

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The initial money supply is $10,000. a. If the reserve requirement is 100% and people hold $1000 in currency and $9000 in demand deposits, what is the money supply? b. If the reserve requirement is 20% and people hold all money as demand deposits, what is the money supply? c. Suppose the reserve requirement is 10%, but banks hold 20% in reserves. If people hold all money as demand deposits, what is the money supply? What would the money supply be if banks held only the required amount?

Reference no: EM131169604

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