What is the money multiplier example?

For example, if the commercial banks gain deposits of $ 10 million and this leads to a final money supply of $ 100 million,the money multiplier is 10.You can read about the Money Supply in Economy – Types of Money, Monetary Aggregates, Money Supply Control in the given link.

Further readings:

  1. Monetary Policy – Objectives, Roles and Instruments (UPSC Indian Economy)
  2. Topic-Wise GS 3 Questions for UPSC Mains

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