The document outlines calculations for the M1 and M2 money multipliers, which are 1.75 and 11.33, respectively. It discusses how the money multiplier is affected by the banks' reserve ratio, indicating that an increase in reserves with no change in deposits increases both the reserve ratio and the money multiplier. Data from June 2014 shows the amounts held by individuals, businesses, and banks, detailing their currency, deposits, and reserves.

1. Calculate the M1 and M2 money multipliers using the nformation on the right. The M1
multiplier is 1.75. The M2 multiplier is 11.33 . > A Answer to 2 decimal places. How is the
money multiplier influenced by the banks' reserve ratio? An increase in banks' reserves with no
change in deposits banks' reserve ratio and the money multiplier. A. increases; increases B.
decreases; increases C. increases; decreases D. does not change; does not change In June 2014,
individuals and businesses held: - $50 billion in currency - $1,000 billion in chequable deposits -
$5,000 billion in non-chequable deposits - $750 billion in fixed term deposits and other deposits
In June 2014, banks held: - $450 billion in currency - $100 billion in reserves at the central bank
- $800 billion in loans to households and businesses