Money multiplier is 20, the maximum possible

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Uploaded: 10.09.2013
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Description

Control theoretical question
Passive operations of commercial banks
Control test items
2. What is meant by "the monetary system?"
a) this kind of money;
b) it is a form of organization of monetary circulation in the country.
3. What are the characteristics of the floating exchange rate?
a) The rate is set by the central bank;
b) the rate set by commercial banks - operators of the currency market;
c) the course is not dependent on the supply and demand for foreign currency;
Task
Money multiplier is 20, the maximum possible amount of money that can create the banking system - 80 mln. Rubles. Define:
a) the required reserves;
b) the amount of the initial deposit.
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