Answer:
D.) 10
Explanation:
Given the question:
Required reserve ratio equals 10 percent, Calculate the simple deposit multiplier?
Given that :
Reserve ratio (RR) = 10% = 0.1
The simple deposit multiplier is the reciprocal of the required reserve ; mathematically expressed as :
Simple deposit multiplier = 1 / RR
Simple deposit multiplier = 1 / 0.1
Hence simple deposit multiplier = 10
