Note 1-49

49 The relationships involved in determining the monetary multiplier are as follows. Monetary multiplier = (M2 + CD) / monetary base. Increases/decreases in the monetary multiplier = [financial sector's reserves / factors in rises/falls in the deposit rate] + [cash in the financial sector / factors in rises/falls in the deposit rate] + [cash in the non-financial sector / factors in rises/falls of the deposit rate]