Click the Study Aids tab at the bottom of the book to access your Study Aids (usually practice quizzes and flash cards).
Study Pass is our latest digital product that lets you take notes, highlight important sections of the text using different colors, create "tags" or labels to filter your notes and highlights, and print so you can study offline. Study Pass also includes interactive study aids, such as flash cards and quizzes.
Highlighting and Taking Notes:
If you've purchased the All Access Pass or Study Pass, in the online reader, click and drag your mouse to highlight text. When you do a small button appears – simply click on it! From there, you can select a highlight color, add notes, add tags, or any combination.
If you've purchased the All Access Pass, you can print each chapter by clicking on the Downloads tab. If you have Study Pass, click on the print icon within Study View to print out your notes and highlighted sections.
To search, use the text box at the bottom of the book. Click a search result to be taken to that chapter or section of the book (note you may need to scroll down to get to the result).
View Full Student FAQs
Chapter 15 The Money Supply and the Money Multiplier
By the end of this chapter, students should be able to:
- Compare and contrast the simple money multiplier developed in Chapter 14 "The Money Supply Process" and the m1 and m2 multipliers developed in this chapter.
- Write the equation that helps us to understand how changes in the monetary base affect the money supply.
- Explain why the M2 multiplier is almost always larger than the m1 multiplier.
- Explain why the required reserve ratio, the excess reserve ratio, and the currency ratio are in the denominator of the m1 and m2 money multipliers.
- Explain why the currency, time deposit, and money market mutual fund ratios are in the numerator of the M2 money multiplier.
- Describe how central banks influence the money supply.
- Describe how banks, borrowers, and depositors influence the money supply.