How to go to ZhongGuanCun physical examination center by subway
The money and loan provided by the bank will proce several times of its deposit through several deposit, loan and other activities, which is commonly known as derivative deposit. The size of money multiplier determines the expansion capacity of money supply. The size of money multiplier is determined by the following factors:
1, cash ratio (k)
cash ratio refers to the ratio of cash in circulation to current deposits of commercial banks. The cash ratio is positively related to the money demand. Therefore, all factors affecting money demand can affect the cash ratio
2. Excess reserve ratio (E)
the ratio of the reserve held by commercial banks in excess of the statutory reserve to the total amount of deposits is called excess reserve ratio. Obviously, the existence of excess reserve reces the ability of banks to create derivative deposits. Therefore, the relationship between excess reserve ratio and monetary multiplier also changes in the opposite direction. The higher the excess reserve ratio is, the smaller the monetary multiplier is; On the contrary, the greater the money multiplier
Extended data:
China's long-term balance of payments surplus makes China's foreign exchange reserves continue to increase, international capital flows will eventually be reflected in the balance sheet of the banking system, resulting in the same direction changes in the base currency, and through the role of monetary multiplier to enlarge or rece the broad money supply. Therefore, the change of China's monetary policy regulation mechanism is closely related to the change of international capital flow
The monetary multiplier is determined by the cash leakage ratio, the legal reserve ratio and the excess reserve ratio. In order to answer the question of how international capital flows affect the change of money multiplier, it is necessary to explain how international capital flows affect the central bank, commercial banks, enterprises and families, and then affect the money multiplier in the process of economic developmentm1=M1/B=(1+C)/(r+trt+e+c)
m2=M2/B=(1+C+t)/(r+trt+e+c)
影响因素:
r、t、rt、e、c