what is credit multiplier?
Credit multiplier is the resiprocal of Cash Reserve Ratio.
Credit Multiplier = 1 / CRR
OR
Credit Muliplier = Demand deposits / Cash reserves
what is credit multiplier?
Credit multiplier is the resiprocal of Cash Reserve Ratio.
Credit Multiplier = 1 / CRR
OR
Credit Muliplier = Demand deposits / Cash reserves