If the reserve requirement on checkable deposits is .25, the ratio of currency held by the public to

demand deposits is .15, the ratio of time deposits to demand deposits is 3, the reserve requirement on time deposits is 0, and the ratio of excess reserves to demand deposits is 0, then the demand deposit multiplier is
A) 5.
B) 4.
C) 3.33.
D) 2.5.

ANSWER:

D 2.5.