An assumption in the model of the money supply process is that the desired levels of currency and excess reserves

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The model of the money supply process assumes that the desired levels of currency and excess reserves grow proportionally with checkable deposits. This is known as the deposit multiplier, which determines the amount of checkable deposits that can be created by a given amount of high-powered money, such as reserves held by banks at the central bank. Therefore, the assumption is that banks will hold a fraction of checkable deposits as excess reserves and currency in order to meet customers' demand for withdrawals and payments.

An Assumption in the Model of the Money Supply Process