To reach the maximum money multiplier,it is assumed that

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The maximum money multiplier is achieved when all loans get redeposited into a checking account. This is because when a new loan is made, the borrower gets the funds which are deposited into their checking account. This increases the amount of money in the bank's reserves. The bank can then lend out a portion of the new reserves to another borrower, who will also deposit the funds into a checking account. This process continues, resulting in an increase in the money supply. If all loans get redeposited in a checking account, the process can continue indefinitely, resulting in the maximum money multiplier.

To Reach the Maximum Money Multiplier,it Is Assumed That