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DEPOSIT MULTIPLIER: The magnified change in checkable deposits resulting from a change in bank reserves. The simple deposit multiplier is the inverse of the required-reserves ratio. If banks keep 10 percent of their deposits in reserves, then the deposit multiplier is the inverse of 10 percent, or 10.

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M1

The narrow-range monetary aggregate for the U.S. economy containing the combination of currency (and coins) issued by government and held by the nonbank public and checkable deposits issued by banking institutions. M1 contains the two items that function as THE medium of exchange for the U.S. economy. M1 is one of three monetary aggregates tracked and reported by the Federal Reserve System. The other two are designated M2 and M3.

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The Dow Jones family of stock market price indexes began with a simple average of 11 stock prices in 1884.
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