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The money multiplier is normally presented in the context of some simple accounting identities: [1] [2] Usually, the money supply (M) is defined as consisting of two components: (physical) currency (C) and deposit accounts (D) held by the general public. By definition, therefore:
In banking, a minimum daily balance is the minimum balance that a banking institution requires account holders to have in their accounts each day in order to waive maintenance fees. [1] This is not to be confused with the average daily balance, which is computed as the sum of daily balances in a billing period divided by the number of days.
For a time, checking accounts were subject to reserve requirements, whereas there was no reserve requirement on savings accounts and time deposit accounts of individuals. [18] The Board for some time set a zero reserve requirement for banks with eligible deposits up to $16 million, 3% for banks up to $122.3 million, and 10% thereafter. The ...
After putting aside a part of these deposits as mandated bank reserves, the balance is available for the making of further loans by the bank. This process continues multiple times, and is called the multiplier effect. The multiplier may vary across countries, and will also vary depending on what measures of money are being considered.
The money multiplier, m, is the inverse of the reserve requirement, R: [26] =. In countries where the central bank does not impose a reserve requirement, such as the United States, Canada and the United Kingdom, the theoretical money multiplier is undefined, having a denominator of zero. [27]
Visa requirements for Canadian citizens are administrative entry restrictions by the authorities of other states placed on citizens of Canada.. As of 2025, Canadian citizens had visa-free or visa on arrival access to 188 countries and territories, ranking the Canadian passport 7th in the world according to the Henley Passport Index. [1]
Reserve requirements oblige commercial banks to keep a minimum, predetermined, percentage of their deposits at an account at the central bank. Countries with no reserve requirement include the United States, Great Britain, Australia, Canada and New Zealand, which means no minimum reserve requirement is imposed on banks.
The visa policy of Canada requires that any foreign citizen wishing to enter Canada must obtain a temporary resident visa from one of the Canadian diplomatic missions unless they hold a passport issued by one of the 53 eligible visa-exempt countries and territories or proof of permanent residence in Canada or the United States.