If money supply is M = 1,200, currency outstanding is Cu = 380, and the monetary base (high-powered money) is H = 480,

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The money multiplier (m) is calculated as M/H, where M is the money supply and H is the monetary base. Here, m = 1200 / 480 = 2.5. Bank deposits (D) can be found by subtracting currency outstanding (Cu) from the money supply (M), so D = M - Cu = 1200 - 380 = 820.

If Money Supply Is M = 1,200, Currency Outstanding Is