Money multiplier can be expressed as _____________.

Correct option is D

The money multiplier is a measure of the maximum amount of money that can be created by a given amount of reserves. It can be expressed as:
Money Multiplier = 1 / Cash Reserve Ratio
· Where Reserve Ratio is the fraction of deposits that banks are required to hold in reserve as per the reserve requirements set by the central bank. The higher the reserve ratio, the lower the money multiplier, and vice versa.
· This formula assumes that all banks in the system are fully utilizing their excess reserves and that there are no leakages or withdrawals from the system. In reality, the money multiplier is affected by various other factors such as the willingness of banks to lend, the demand for credit, and the monetary policy of the central bank.