Problem
Z just received k300,000 from his daughter who stays in Germany. He deposits the entire k300,000 in the bank.given that the reserve ratio is 15%.
(A) Calculate the deposit and credit multiplier?
(B) If the bank and other commercial banks in the country are profit maximizing banks banks which do not keep excess reserves, by how much will credit and deposits grow in the economy as a result of z's deposit of k300,000?
(C) What factors will limit the credit creation process in this economy?
(D) Describe how the bank of Zambia undertakes expansionary monetary policy using discount rate policy.
(E) Of the monetary policy tools stated in (d),which is the bank of Zambia 's preffered policy tool?explain why?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.