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What is money multiplier ?

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What is money multiplier ?

Posted by Simran Kaur 5 years, 9 months ago

CBSE > Class 12 > Economics

3 answers

Aaina Gupta 5 years, 9 months ago

Numerically money multiplier =(1/LRR)

Harshit Mishra 5 years, 9 months ago

It is the process in which money multiply many a times initial deposit

Reyansh Sharma 5 years, 9 months ago

The money multiplier is the amount of money that banks generate with each dollar of reserves. Reserves is the amount of deposits that the Federal Reserve requires banks to hold and not lend. Banking reserves is the ratio of reserves to the total amount of deposits.

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