Question 1
Refer to the information provided in Scenario 25.2 below to answer the question(s) that follow.
SCENARIO 25.2: 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 25.2. What is the money multiplier in this economy?
◦ 10
◦ 16.67
◦ 20
◦ 50
Question 2
Refer to the information provided in Scenario 25.2 below to answer the question(s) that follow.
SCENARIO 25.2: 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 25.2. How much money will be created based on the initial $100,000 deposit?
◦ $1 million
◦ $2 million
◦ $16.67 million
◦ $50 million