Answer to Question #256991 in Macroeconomics for Malita

Question

If the economy of Namaqualand, the commercial banks have deposits of N$600 billion. Their reserves are N$600 billion. All reserves are in deposits with the central bank notes outside the banks, and there are no coins

Answer 1

From the above information we can calculate the quantity of money for the economy of Namaqualand which can be obtained as;

N$600 billion(Bank Deposits) +N$600 billion( Currency in circulation) =N$1200 billion.