Example of a single deposit multiplier?

The single deposit multiplier, also known as the money multiplier, refers to the process by which a single deposit in a bank can lead to a greater increase in the overall money supply through the lending process. For example, if a bank receives a deposit of $1,000 and has a reserve requirement of 10%, it must keep $100 in reserve but can lend out $900. When this $900 is deposited in another bank, that bank can lend out $810 (keeping $90 in reserve), and this cycle continues, illustrating how a single deposit can expand the money supply significantly through multiple rounds of lending.