Exhibit 19-5 Balance sheet of Tucker National Bank

-If all banks in the system shown in Exhibit 19-5 were identical to Tucker National Bank,the money multiplier for the system would be:

Question

Exhibit 19-5 Balance sheet of Tucker National Bank
 
-If all banks in the system shown in Exhibit 19-5 were identical to Tucker National Bank,the money multiplier for the system would be:

Quizplus · Accepted Answer

The money multiplier is calculated as 1/(required reserve ratio). In this case, the required reserve ratio is 20%, so the money multiplier is 1/0.20 = 5.

Exhibit 19-5 Balance Sheet of Tucker National Bank