The government of eastlandia uses measures of monetary


The government of Eastlandia uses measures of monetary aggregates similar to those used by the United States and the central bank of Eastlandia imposes a required reserve ratio of 10%. Given the following information, answer the questions below.

Bank deposits at the central bank (Eastlandia's Fed) = $200 million

Currency held by the public = $150 million

Currency in bank vaults = $100 million

Checkable bank deposits = $500 million

Travelers' checks = $10 million

a. M1 is $ __________ million.

b. The commercial banks are holding excess reserves of $ __________ million.

c. The commercial banks can potentially increase the money supply by $ __________ million.

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