Answer:
the simple money deposit or multiplier is 11.11
Explanation:
The computation of the simple money deposit or multiplier is as follows:
As we know that
Money Multiplier = 1 ÷ Reserve Ratio
Now if the required reserve ratio is 9%
So, the money multiplier is
= 1 ÷ 9%
= 1 ÷ 0.09
= 11.11
hence, the simple money deposit or multiplier is 11.11
We simply applied the above formula so that the correct value could come
And, the same is to be considered
