Money Supply Multiplier Effect. 創造出貨幣的乘數效果
1. Ideally, the money multiplier = Deposit/ Required Reserve Ratio
2. the above (d) this ability to create more Money supply is based on the "Excess Reserve".. What if this bank puts all the deposit of 10,000 into "required reserve" instead of " excess reserve".. then the ability to create new money supply will be compromised. Or this bank holds all the Excess Reserve money at hand, not making it a loan.
