In a banking system, there are $1000 reserves, of which $600 is excess reserves. Also, there are $2000 deposits. What is the maximum banking multiplier?

Required reserve ratio = (Reserve - Excess Reserve) / Deposits x 100%

= (1000 - 600) / 2000 x 100%

= 20%

Maximum banking multiplier = 1 / required reserve ratio

= 1 / 20%

= 5