The money multiplier represents the relationship between excess reserves and the number of deposit dollars the banking system can generate.

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The money multiplier is a formula used to calculate the maximum amount of money that the banking system can create through the lending process based on a given amount of excess reserves. It represents the relationship between excess reserves and the number of deposit dollars that can be generated. Therefore, the statement is true.

The Money Multiplier Represents the Relationship Between Excess Reserves and the Number