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question

What is meant by the term "monetary (or demand deposit) mul-tiplier," and how is it calculated?

category

economics

options

  1. The monetary multiplier is the ratio of the total amount of a country's money supply to its central bank's monetary base.
  2. The monetary multiplier is the increase in total currency in circulation resulting from a single unit of currency being deposited into the banking system.
  3. The monetary multiplier is the ratio of total demand deposits to the total reserves of the system.
  4. The monetary multiplier is the ratio of the total reserves of the system to the total number of loans granted.
  5. The monetary multiplier is the ratio of total demand deposits to the total loans of the system.
  6. The monetary multiplier is the ratio of total loans to the total reserves of the system.
  7. The monetary multiplier is the ratio of total reserves to the total demand deposits of the system.
  8. The monetary multiplier is the rate at which new money is created through the fractional reserve banking system for every dollar of central bank reserves.
  9. The monetary multiplier is the ratio of government bonds held by the public to the total reserves of the banking system.
  10. The monetary multiplier is the percentage of total deposits that banks must keep as reserves.

src

stemez-Economics

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