The maximum increase in the money supply possible from a deposit of $D into the banking system where R is the reserve requirement is
A)(1 / R)(D − R).
B)R × D.
C)(1 / R)(1 − R)D.
D)(1 / R)D.

Question

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The Answer of The maximum increase in the money supply possible from a deposit of $D into the banking system where R is the reserve requirement is
A)(1 / R)(D − R).
B)R × D.
C)(1 / R)(1 − R)D.
D)(1 / R)D.

The Maximum Increase in the Money Supply Possible from a Deposit