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If, During a Deposit Expansion, Not All Money Gets Redeposited

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If, during a deposit expansion, not all money gets redeposited into the banking system and some leaks out as currency, then the real world multiplier is


Definitions:

Market Price

The price at present for the exchange of an asset or service on the open market.

Paid In Surplus

The amount of money paid by investors for shares above their nominal value during the issuance of shares, reflecting the additional equity capital that is not registered as share capital.

Stock Split

An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares.

Market Price

The present trading price for an asset or service in the marketplace.

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