Answer:
d) $100,000
Explanation:
The maximum money that can be created from this deposit of $25,000 can be computed by calculating the credit multiplier.
Credit Multiplier = 1 / Reserve ratio = 1 / 0.25 = 4
This means a new deposit that was previously not in the circular flow creates 4 times as much money. Banks thus, are able to make loans equivalent to 4 * $25,000 = $100,000 which will be reflected in commercial banks around the system.
Hope that helps.
