申論題

Suppose that the monetary base in an economy is $100 billion and currency drain ratio is 5%. People deposit 80% of currency in saving deposit with the required reserve ratio R1=10% and deposit the rest of currency in time deposit with R2=5%. Money is created through the process of deposit and loan in the banking system.  Explain the process of money creation. _________Calculate the money supply M = ________ of this banking system.Calculate the monetary multiplier M/B = ________ of this banking system.