The money multiplier allows banks to expand the money supply.

Name: The money multiplier allows banks to expand the money supply.
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The money multiplier concept in banking describes how an initial deposit can lead to a larger increase in the total money supply. This occurs because banks keep a fraction of deposits as reserves and lend out the rest, which then gets redeposited and lent out again, repeatedly expanding the money supply.

The Money Multiplier Allows Banks to Expand the Money Supply