1. The money multiplier formula shows effects of
Aa cash deposit into banking system on the money supply
Blow interest rates on creditors over a long period
Cfederal reserve discount rate reductions on the bond markets
Da required reserve ratio on excess reserves

I need help on this, Unit 6 Lesson 10, please. CCA

Verified Answer :

Answer: a cash deposit into
banking system on the money supply

The
money multiplier refers to the ratio of deposits to the reserves in a certain
banking system. The money multiplier formula is caused by a cash deposit in a
bank on the money supply.