Advertisements
Advertisements
प्रश्न
Define 'money multiplier'.
व्याख्या
Advertisements
उत्तर
Money multiplier is defined as the ratio of stock of money (MS) to the stock of High Powered Money (H). In other words, it shows the number of times the total deposits have increased from the initial deposits of money.
Algebraically, money multiplier can be presented as:
`"M"_m = ("M"_"s")/"H"`
where,
MS represents the Stock of Money
H represents High Powered Money
Mm represents Money Multiplier
shaalaa.com
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
