Federal Reserve’s reserve requirement ratio

Suppose that households wished to maintain $1.00 in pocket money (currency

and coin) and $10.00 in liquid savings assets (small CDs, money funds, and

savings accounts) for every $1.00 in their checking accounts (transaction

deposits). If banks choose their desired reserves to be ten cents for every dollar

of transaction deposits, what are the reserve multiplier and the money (M2)

multiplier if the Federal Reserve’s reserve requirement ratio is: (a) 8 percent;

10 percent; and (c) 12 percent?