If the reserve ratio is 10 percent, $1,000 of additional reserves can create?

Question

If the reserve ratio is 10 percent, $1,000 of additional reserves can create


$100 of new money.
$1,000 of new money.
$10,000 of new money.
None of the above is correct.

Answer 1

Wikipedia is your friend. Check out:
http://en.wikipedia.org/wiki/Reserve_ratio

especially the section entitled "Effects on money supply"

Just as an aside, note that if one can create $1000, one can also create $100, so the question is fundamentally flawed as $100 is always a correct answer, even if it isn't the desired answer.