The M2 multiplier in the United States is currently about
A) 2.
B) 5.
C) 16.
D) 50.
E) 23.

Question

Quizplus · Accepted Answer

The M2 multiplier in the United States is calculated by dividing M2 (which includes cash, checking accounts, savings accounts, and time deposits) by the monetary base (which includes currency in circulation and reserves held by banks). As of February 2021, M2 was approximately $19.5 trillion and the monetary base was approximately $4.0 trillion, resulting in an M2 multiplier of about 4.88 (rounded to 5). Therefore, the best choice is B, as it is the closest option to the actual M2 multiplier.

The M2 Multiplier in the United States Is Currently About