Original question: Assume that the statutory reserve ratio of checking deposits is 15%, the non-transaction deposits statutory reserve ratio is 4%, the bank's excess reserve ratio is 5%, the ratio of cash to checking deposits in circulation is 32%, and the ratio of non-transaction deposits to checking deposits is 300%. What is a currency multiplier?

RefeRence answer: the calculation formula of the complete money (policy) multiplier is: k=(Rc+ 1)/(Rd+Re+Rc), where Rd, re and Rc respectively represent the statutory reserve ratio, excess reserve ratio and the proportion of cash in deposits. The basic calculation formula of money (policy) multiplier is: money supply/base money. Money supply equals money. The base currency is equal to the sum of money and reserves.

According to the formula, k = 0.32+1+3/0.15+0.05+0.04+3 =1.333.

1. What is the excess reserve ratio?

By adjusting the deposit reserve ratio, the central bank can influence the credit expansion ability of financial institutions, thus indirectly regulating the money supply. The excess deposit reserve ratio refers to the ratio of the reserves retained by commercial banks that exceed the statutory deposit reserve to all current deposits. From a morphological point of view, excess reserves can be cash or highly liquid financial assets, such as reserve deposits in central bank accounts.

2. What is the real effect of the deposit reserve ratio policy?

The real effect of the deposit reserve ratio policy is that it can expand the credit of commercial banks and adjust the money multiplier. There is a multiplier relationship between the credit expansion ability of commercial banks and the amount of base money put in by the central bank, and the multiplier is inversely proportional to the deposit reserve ratio.

3. Why did the central bank reduce the deposit reserve ratio?

With the development of financial system, deposit reserve has gradually evolved into an important monetary policy tool. When the central bank reduces the deposit reserve ratio, the funds available for loans by financial institutions increase, and the total amount of loans and money supply in society also increase accordingly; On the contrary, the total amount of social loans and money supply will decrease accordingly.

4. What is the deposit reserve interest rate?

The interest rate level of deposit reserve refers to the interest rate level implemented by the People's Bank of China to pay the interest on deposit reserve of financial institutions. At the end of 20 10, the statutory deposit reserve interest rate of RMB is 1.62%, and the excess deposit reserve interest rate is 0.72%. The foreign exchange deposit reserve does not pay interest. Generally speaking, raising the deposit reserve ratio will force interest rates to rise, which is a signal of tightening monetary policy. The deposit reserve ratio is aimed at banks and other financial institutions, and its impact on the final customers is indirect; The interest rate is aimed at the final customer, such as the interest on your deposit, and the impact is direct. 1, because of inflation caused by excess liquidity, raising the reserve ratio can effectively reduce liquidity. 2. Because of the credit crisis in the United States, raising the reserve ratio can ensure the payment ability of the financial system, increase the ability of banks to resist risks and prevent financial risks. On July 9, 2007, the semi-annual economic report of China was released.