The deposit expansion multiplier on bank reserves is

A) the reserve requirement.
B) one minus the reserve requirement.
C) one.
D) one divided by the reserve requirement.

Deposit Expansion Multiplier

A ratio that measures the potential increase in money supply from an initial deposit through the banking system's ability to lend and create money.

Reserve Requirement

The minimum amount of reserves a bank must hold against its deposits, as mandated by monetary authorities, to ensure banking stability.