What amount are you choosing as your initial Deposit for your example? (You can't use $1,000 or $10,000)

$40,000

Round 1:

How much will be held in reserves held with a 10% required reserve ratio in Round 1?

$4,000

What is the amount of loan with no excess reserves held in Round 1?

$4,00 If you start with $40,000 and hold back $4,000 how much is left to loan? That is what should go here. Then that amount will be what is redeposited in the next part -c and then used to kick of round two with more reserves held and a new smaller loan made.

How much of the loan proceeds are redeposited to kick off Round 2?

$400,000

Round 2:

You need to start this from the amount redeposited in Round 1 and hold your 10% reserves from there.

How much will be held in reserves held with a 10% required reserve ratio in Round 2?

$40,000

What is the amount of loan with no excess reserves held in Round 2?

$400,000

How much of the loan proceeds are redeposited?

$4,000,000

What is the simple money multiplier when there is a 10% required reserve ratio?

The simple money multiplier is requiredreserves=rrdeposits this amount is at 10%

The money multiplier is 1/required reserve ratio.

When the process is complete how much money does your initial deposit lead to?

When the process is complete the $40,000 that I initially had grew so I ended up with more money than what I started with in the end. How much more money was created? Use the multiplier from part 9.