Economics · Banking and Monetary Policy

The money multiplier is defined as the ratio of:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Broad money to narrow money
2M3 to M1
3Reserve money to money supply (H / M)
4Money supply to reserve money (M / H)✓

Correct answer

Money supply to reserve money (M / H)

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The money multiplier is defined as the ratio of:

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