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Desired reserve ratio and the currency drain ratio

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Reference no: EM131943490

In the economy of Nocoin, bank deposits are 300 billion, bank reverse are 15 billion of which two-thirds are deposit with the central bank. Household and firm hold 30 billion in bank notes. There are no coins. Calculate:

a. The money base and quantity of money

b. The bank's desired reserve ratio and the currency drain ratio( as percentage)

Reference no: EM131943490

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