Table 9-6: Deposit Expansion Stages

Multiple Choice

Table 9-6: Deposit Expansion Stages
In Table 9-6, assume that banks loan out 100% of their excess banking reserves, there are no cash withdrawals, and all loan proceeds are spent. Figures have been rounded up to the nearest whole number.
-Refer to Table 9-6. What is the value of the deposit multiplier?

A) 0.1
B) 0.2
C) 1
D) 5