2. a. With appropriate equations and notations, derive the money
multiplier (M1).
b) AMALAND is a country with a required reserve ratio of 10%.
Assume that the banking system has an excess reserves equal to 4
billion. Further, the currency in circulation equals 450 billion,
and the total amount of checkable deposits equals 900 billion.
Based on these numbers, calculate (i) required reserves held by the
banking system (ii) total reserves held by the banking system,
(iii) monetary base (iv)...