Multiplier meaning, assumptions, formula, Factors affecting multiplier, Banks’s role in multiplier
Description
- What is the meaning of money multiplier?
- What is the other name given to the term “money multiplier”?
- What is the formula to calculate the money multiplier?
- Which authority in the banking system decides the reserve ratio?
- The money multiplier is typically a number between 1 and 10, but it can vary. Comment.
- How banks contribute to the money multiplier process?
- What is the meaning of excess reserves?
- Whether there is direct relationship or inverse relationship between the reserve requirement ratio and money multiplier? Comment.
- What effect occurs on money multiplier if the reserve requirement is raised by the Central Bank?
- If the reserve requirement ratio stands reduced, what effect it will have on the money supply in the economy?
- How to calculate the total deposits created when initial deposit and reserve ratios are given?
- How to calculate the initial deposits when total deposited created by the commercial banks and the reserve requirement ratio are given?
- What are some common simplifying assumptions associated with the money multiplier?
- There are some assumptions associated with the concept of money multiplier. But these assumptions may not always hold true in the real-world banking system. Why?
- What are those factors which may affect the money multiplier?
Who this course is for:
- Students, business man and general public
