Due to the multiplier effect, what is the maximum amount that there bank could loan out?

Uhhh... $34.000 if I’m wrong just comment me saying REJECTED

The maximum amount a bank can lend depends on the reserve ratio.

Explanation:

The money multiplier effect is the process that allows banks to multiply money from an initial amount of money.

Imagine that John makes a deposit of $ 1,000 in a bank, if the cash ratio is 10%, the bank will have to save 10% of that $ 1,000 ($ 100) and can lend $ 900 of that money to Mary. If Mary deposits it again in the bank, the bank saves 10% of the $ 900 deposited (90 dollars) and lends the remaining $ 810 to Norman, so on in a decreasing infinite series.

This is because banks are only required to keep a minimum level of money in their reserves. This minimum is called the reserve ratio and is determined by each central bank.

if you have to make a general question and respond to your thoughts, then this isn't really a question someone can you on. read the passage, form your question, and answer using your thoughts. no one else can understand how you interpreted this text if you don't tell us.

they could have terrible tropical storms which will destroy the crops in the colonies