The ratio between the supply of actual money in an economy, and the total supply of money plus available credit. The amount of available purchasing power in an economy is generated by banks lending out currency while keeping a fraction of deposits on site, expanding the working money supply.
Related information about money multiplier:
- Money multiplier - Wikipedia, the free encyclopedia
In monetary economics, a money multiplier is one of various closely related ratios of commercial bank money to central bank money under a fractional-reserve ...
- Money creation - Wikipedia, the free encyclopedia
This limit is the value that the money multiplier calculates. Note that ... As a formula, if the reserve ratio is R, then the money multiplier m is the reciprocal, m = 1/R, ...
- Money Multiplier - YouTube
Jun 1, 2009 ... Aids FLVS student in understanding banking and money multiplier process.
- What is money multiplier? definition and meaning
Definition of money multiplier: Mathematical relationship between the monetary base and money supply of an economy. It explains the increase in the amount of ...
- M1 Money Multiplier (MULT) - FRED - St. Louis Fed
Series: MULT, Ratio, Bi-Weekly, Ending Wednesday, 1984-02-15 to 2012-11-14, SA, FRED: Download, graph, and track economic data. Tags: multiplier ...
- Money multiplier
The money multiplier (also called the credit multiplier or the deposit multiplier) is a measure of the extent to which the creation of money in the banking system ...
- Multiplier Effect Definition | Investopedia
The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends on the percentage of deposits that ...
- Economics: Supply of Money
Multiplying $90,000 by the money multiplier, 10, yields $900,000, which is the ... In this case, the money multiplier will still be greater than 1, but it will be less ...