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3 Table: Multiple Deposit Expansion First National Bank ASSETS LIABILITIES Required reserves Deposits $400,000 Loans $360,000 TOTAL TOTAL Second National Bank ASSETS LIABILITIES Required reserves

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Table: Multiple Deposit Expansion First National Bank ASSETS LIABILITIES Required reserves Deposits $400,000 Loans $360,000 TOTAL TOTAL Second National Bank ASSETS LIABILITIES Required reserves Deposits Loans TOTAL TOTAL Third National Bank ASSETS LIABILITIES Required reserves Deposits Loans TOTAL TOTAL Reference: Ref 153 (34-3) (Table: Multiple Deposit Expansion) Refer to the table. For the multiple deposit expansion process described in this table, if all banks hold only the required reserves, what is the money multiplier inthis country? OAS @3125 ocs 00.10

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