Question

The accompanying table gives data for a commercial bank or thrift. when the legal reserve ratio is 30 percent, the monetary multiplier is multiple choice 4. 3.33. 5. 2.5.

Answer 1

The monetary multiplier is the maximum amount the money supply which could be increased based on the increase in Banking system's reserve.
The formula for monetary multiplier is:
1/ Legal reserve ratio

So, Monetary multiplier:
1/30%     =>  100/30  => 3.33