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Topic Date
T h e M o n e yM u l t i p l i e r
to
due
supply
money
the
in
changr
Money Maltiplier
mempotential
Gives
the
achang r e r v e s
mupuerrequired
reserve
ratio It is
a
Patential a
tbe Doney
base
change in MS called larger than (1)
is is
p l e r
that a
by change in "high one, the
more MB
than 1%.bypower
1% ed money",
leads to
a
A P-T:0
MuLTIPLIER
MONEYMyLTIPLIER
1ouEY
onthary
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s o l y sstlatud
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hos
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n d
co o s e l anty
manty
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cutral bank
barkmansy
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a
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at
aunt Artral ban
wtom
Step tep
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tpglarattor
Suppese T
dtnt
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2
a epen mazkut operahn,
bey 1 p bankTe bo
1e bank
ard The
dpsits t in teta catasL
ws bank ord oe inhe menty Seppl
h btztulzySS precssSun tatcontnuts, is he Sum thmctas
servis tg ba Sees unhe he preces att tachsep
Canne be conh AM 1D0t9ptS
Onmex
Topic
FNpplicatin
oney
Mutiplier
Moxd MuLhplier /Rsorv Ratio
Resov Rahe 25 /100 4
sntyMulhplic /C/40
h e Meney Muth plier is hus
2250*4
qooo
.The answey is 9000.
Apr-08
Money Miktpler
Aug081
Jn-08
in-08
Oct-08
Dec-08
Feb-09
Apr-09
Raphica Jn-00-
Aug-D9
Dct-09
Deo09
Feb-10
$1,000
$900
$800
Aepresenialion
The expansion of $100 through fractonal-reserve banking
with varying reserve requlrements
(accumulatlon of deposits)
Reserve
Requlrement
$700 10%
$600 20%
30%
$500
40%
$400
-50%
$300
$200
$100
$0
ABCDEFGHI JKLMNOPQRS TUVWXY2
individual deposits
nenical:
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MoneyE
Mutilglten:
LRR is non Sa
keep
Con ose he Mm 20' X
he ema um wbldlh Ls mons
200
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mtns as Rs
acL@Ut ISocehually ntining Rs 1he bankloooo hih SB
Ho
isoccaunt
ake
ven
ven
nedin his aLaon Roooto
a
CAsh
whs
Can only
veserve The bank
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payments Now YY 1sisname ard Cash Cash, but
bank Stnce the but on
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om
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oplyspest by Ztenss
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bank t
aisAis bank ceate
depesit cidd
pcess e Called
fere depaiis he hiss is Called
e c e e 22
00his
deivahue
Cen h noes i
Title Date
Page No.
blioraphua
hanks povgmg t Coplete 1is
pejtet
FolloIng wth Linbs andSBurce hoatera was
vs
Complete his projtct
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