Describe the condition of a banking system

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Assume that the following data describe the condition of a banking system.

Total reserves $200 billion, Transaction deposits $800 billion, Cash held by public is $400 billion, Reserve requirement .20.

How large is the money supply (M1)?--------------

How large are required reserves?--------------

How large are excess reserves?--------------

By how much could the banks increase their lending activity? -------------

Reference no: EM13801665

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