Class Notes (1,100,000)
CA (620,000)
UTSG (50,000)
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ECO102H1 (200)
Lecture 15

ECO102H1 Lecture Notes - Lecture 15: Bank Reserves, Reserve Requirement, Excess Reserves


Department
Economics
Course Code
ECO102H1
Professor
James Pesando
Lecture
15

This preview shows pages 1-3. to view the full 12 pages of the document.
[ECO100 ECONOMICS]
MONEY, BANKING, MONETARY POLICY
 
 
 
  ! !
" #$
% &'( )
 )#*+,-
. $
.  +!! 
.  ! /0'$1!1!
2 & '3,3+
4#5 )6'3777#
(' & '
4#/8!58
& '
)*+!! -
5#$7& '
- 589#' 
- :'9$'* -;'
"- +9!; 1:<$;'*37#-
7+#
  ;*$-
=' $#!! 6'3777#>#?
 ##' 
#;,!'$!@,7'
'"AB
$ $#CC
 
D5 $7 ; '#'E5$=+
'E!'  ' 77$F
 &!
5'3777#A'D! F$#'=+
" 5#'#
5#'# 传传传传91
  ;>? #!! 
9'##' ;!  A# ! !'
 3 '39
- #''
)' #!7;@#>)?8!; 7'
#; ; >?
- ) '

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

[ECO100 ECONOMICS]
'$7,8'7>  $ ?A'7
8!>G?'7#!>?
Money(*money is not income)
9''H;!(MS=C+D)
 &#!!9##$8'7>$' '?
9#A'#  35/A'I'
 +'!!
, +$ >$#$ 7 ?
, =$''>$''7 ?
;'>!?#
+#! $7#!>$ $# ! !'?
 3 ;#7A$!>8?
 5' 传传传传A#$' ;!; '@8>'J8?
*No cash drain: money that goes to the public from the bank will be deposited in the bank again
" '! KA#' 8#! 
/+)//+/L/35)11(3M
+#!  '+(for commercial banks)
3*3- :; *:-
%
:".
!%
JL ' 传传传传 (just the cash hold in your pocket)H!$
 K
:#
J
Desired Reserves
Deposits
3#9J
=:5)&://&1+)5/35)1
+!19) !N
 ))5)3:
3 :
H !H
 )5//)35/
3 :
H
/8'HB
!H
/'#8'A#  *#9B 
!;-
 ()3:
3 :
H !H

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[ECO100 ECONOMICS]
:HB
 ))5)3:
3 :
HB !HB
*'O' A $B-
 )5//)35/
3 :
HB
/8'HP
!HB
5'#A#  $P
 ()3:
3 :
HB
:HP
!HB
3 !*)'+!! -
9
9
"9
*'-
H
HB
HP
EQQQQ
H
!*- ! J
ΔDeposits
ΔReserves
! ! J
1
Desired Reserve Ratio
J
1
0. 10
J
+/8'
)$ N'$#
R' 
' *'- 
 # ! !''
' 9 ! !
S!J
ΔReserves
Target Reserve Ratio
S!JST! ! 
58*7-
J
Desired Reserves
Deposits
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