The M3 multiplier in Australia is currently about
A)4.
B)23.
C)20.
D)1.
E)50.

Question

Quizplus · Accepted Answer

The M3 multiplier measures the total amount of money in an economy based on the amount of reserves held by banks. In Australia, the current M3 multiplier is around 20, meaning that for every dollar of reserves held by banks, there is around $20 in money supply within the economy. Therefore, the correct choice is C, which indicates the value of 20.

The M3 Multiplier in Australia Is Currently About