7 questions on "determining the money supply - the money multiplier in reality"
it is called leaving monetary base
monetary authorities control
- Bank reserves which are part of the monetary base aren't considered part of the money supply
- because money held as bank reserves in a bank vault or deposited at the bank of Canada isn't considered part of the money supply
- chequable deposits are part of the money supply, because they are available for spending, but aren't part of the monetary base.
- most of the monetary base and money supply actually consist of currency in circulation.
- The money multiplier
- it should be interpreted as the maximum (potential) change in money supply when there is a unit change in monetary base.
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