The money multiplier ₂ will always be equal to the simple deposit multiplier.

Name: The money multiplier 2 will always be equal to the simple deposit multiplier.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The money multiplier and the simple deposit multiplier are related but not always equal. The money multiplier takes into account the currency drain ratio and the reserve requirement, while the simple deposit multiplier focuses only on the reserve requirement, ignoring currency held by the public.

The Money Multiplier 2 Will Always Be Equal to the Simple

The Money Multiplier ₂ Will Always Be Equal to the Simple