Table 16-7 Metropolis National Bank Is Currently Holding 2% of Its Deposits

Multiple Choice

Table 16-7
Metropolis National Bank is currently holding 2% of its deposits as excess reserves.
-Refer to Balance Sheet of Metropolis National Bank. Metropolis National Bank is currently holding 2% of deposits as excess reserves. Assuming that all banks have the same required reserve ratio, and then none want to hold excess reserves what is the value of the money multiplier?

A) 8.25
B) 10
C) 12
D) 20