Table 16-2. An economy starts with $10,000 in currency. All of this currency is deposited into a single bank, and the bank then makes loans totaling $9,250. The T-account of the bank is shown below.
-Refer to Table 16-2. If all banks in the economy have the same reserve ratio as this bank, then the value of the economy's money multiplier is
A)1.33.
B)10.00.
C)10.81.
D)13.33.

Question

Table 16-2. An economy starts with $10,000 in currency. All of this currency is deposited into a single bank, and the bank then makes loans totaling $9,250. The T-account of the bank is shown below. 
-Refer to Table 16-2. If all banks in the economy have the same reserve ratio as this bank, then the value of the economy's money multiplier is
A)1.33. 
B)10.00. 
C)10.81. 
D)13.33.

Quizplus · Accepted Answer

The Answer of Table 16-2. An economy starts with $10,000 in currency. All of this currency is deposited into a single bank, and the bank then makes loans totaling $9,250. The T-account of the bank is shown below. 
-Refer to Table 16-2. If all banks in the economy have the same reserve ratio as this bank, then the value of the economy's money multiplier is
A)1.33. 
B)10.00. 
C)10.81. 
D)13.33.