If the required reserve ratio is 10 percent,a $100 deposit will ultimately allow the banking system to create how much money?

Name: If the required reserve ratio is 10 percent,a $100 deposit will ultimately allow the banking system to create how much money?
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Quizplus · Accepted Answer

The banking system can create up to 10 times the amount of the initial deposit when the required reserve ratio is 10 percent. Thus, $100 deposit can ultimately allow the banking system to create $1,000 ($100 deposit x (1/0.10)).

If the Required Reserve Ratio Is 10 Percent,a $100 Deposit