The number of times by which total money supply, whether in banks or outside the banking system, can increase for every additional pound of currency in circulation is the

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Quizplus · Accepted Answer

The money multiplier describes how the base money (currency in circulation) can lead to an increase in the total money supply within the banking system. It is based on the reserve ratio and reflects the maximum amount of commercial bank money that can be created, given a certain amount of central bank money.

The Number of Times by Which Total Money Supply, Whether