Refer to the Information Provided in Scenario 10

Multiple Choice

Refer to the information provided in Scenario 10.1 below to answer the questions that follow.
SCENARIO 10.1: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.
-Refer to Scenario 10.1. What is the money multiplier in this economy?

A) 10
B) 16.67
C) 20
D) 50