Money Multiplier is also known as Credit Multiplier or Deposit Multiplier.
It is also known as credit multiplier and deposit multiplier as commercial banks create more deposits by giving credit to others from the initial deposits.
That new deposit works as the money i.e., bank money that can be used as the optional money.
Deposits ₹ 1,000 in commercial bank. Assumed LRR is 10%. Now the bank can lend ₹ 900 to others.
In this process, a new demand deposit account is opened with ₹ 900.
The bank issues the cheque with all demand deposit accounts.
Now, this second account can be used as money to pay for financial liabilities and obligations.
Thus in this whole process money, deposits, and credits are created or multiplied at the same time.
Thus, Money Multiplier is also known as Credit Multiplier or Deposit Multiplier