What is the money multiplier and lending capacity

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Reference no: EM131163285

Total bank reserves: $34 billion

Total bank deposits: $600 billion

Cash held by public: $200 billion

Bonds held by public: $220 billion

Stocks held by public: $140 billion

Gross domestic product: $ 6 trillion

Interest rate 6 percent

Required reserve ratio: 0.05

(a) How large is the money supply?

(b) How much excess reserves are there?

(d) What is the available lending capacity?

Reference no: EM131163285

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