Table 11-2

Multiple Choice

Table 11-2. 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 11-2. 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.