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Suppose the entire economy contains £1,000 worth of one pound coins

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Suppose the entire economy contains £1,000 worth of one pound coins. a. If people fail to deposit any of the pound coins in the bank but instead hold all £1,000 as currency, how large is the money supply? Explain. b. If people deposit the entire £1,000 worth of pound coins in banks that are required to observe a 100 per cent reserve requirement, how large is the money supply? Explain. c. If people deposit the entire £1,000 worth of pound coins in banks that are required to observe a 20 per cent reserve requirement, how large could the money supply become? Explain. d. Suppose the Bank of England engages in open market operations and purchases bonds from private households. What will happen to the money supply?