Use the Information Below to Answer the Following Question

Multiple Choice

Use the information below to answer the following question.
Fact 8.7.1
The Bank of Speedy Creek has chosen the following initial balance sheet:

-Refer to Fact 8.7.1.Suppose all the banks in the banking system have the same desired reserve ratio as the Bank of Speedy Creek.If the currency drain ratio is 32 percent, what is the size of the money multiplier?

A) 1.25
B) 5.0
C) 2.7
D) 3.3
E) 4.0