Question

The money multiplier is measured as

Answer 1

Answer:

highlighted nouns /pronoun .

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Answer 2

Explanation:

In monetary economics, a money multiplier is one of various closely related ratios of commercial bank money to central bank money (also called the monetary base) under a fractional-reserve banking system.[1] It relates to the maximum amount of commercial bank money that can be created, given a certain amount of central bank money. In a fractional-reserve banking system that has legal reserve requirements, the total amount of loans that commercial banks are allowed to extend (the commercial bank money that they can legally create) is equal to a multiple of the amount of reserves. This multiple is the reciprocal of the reserve ratio minus one, and it is an economic multiplier.[2] The actual ratio of money to central bank money, also called the money multiplier, is lower because some funds are held by the non-bank public as currency. Also, in the United States most banks hold excess reserves (reserves above the amount required by the US central bank, the Federal Reserve)M1=cc+OD+DD