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Crazy boy [7]
2 years ago
5

The formula for maximum demand deposit creation is ______ multiplied by the monetary multiplier.

Business
1 answer:
Likurg_2 [28]2 years ago
4 0

The formula for maximum demand deposit creation is excess reserves. multiplied by the monetary multiplier.

A demand deposit is what?

A demand deposit is money deposited into a bank account with funds that can be withdrawn on-demand at any moment. Demand deposit money is often used by the depositor to cover daily expenses. The bank or financial institution may offer a minimal or no interest rate on the deposit for monies in the account.

Demand Payment

A person may only withdraw a set amount every day or a maximum amount equal to their account balance. Money in a checking or savings account would be typical examples of demand deposits. Demand deposits differ from term deposits in this regard. Term depositors must wait a specific amount of time before making any withdrawals.

to know more about demand deposit

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