The economy of Faraway country contains 4,000 notes of RM1.
i. What is the quantity of the money if Faraway citizen hold all money?
ii. What is the quantity of money if Faraway citizen hold all money as current account deposits and banks maintain 100 percent reserves?
iii. What is the quantity of money if Faraway citizen hold equal amounts of currency and current account deposits and banks maintain 100 percent reserves?
iv. What is the quantity of money if Faraway citizen hold all money as current account deposits and banks maintain a reserve ratio of 10 percent?
v. If Faraway citizen hold equal amounts of currency and current account deposits and banks maintain a reserve ratio of 10 percent, what is the quantity of money?