Q. 29) The proportion of deposits held by the public as cash is 0.75 and the proportion of deposits held by the banks for reserves is 0.5. The broad money supply is 1,500 million, what is the value of the narrow money supply? A. 1,200 million B. 1,125 million C. 1,875 million D. None of the above Answer is A. can anyone please explain the solution for this?
Hi Akansha, please can you advise where you have found this question, ie which exam paper has it come from? Thanks, Richie
