In a banking system, there are $1300 reserves, of which $500 is excess reserves. Also, there are $2000 deposits. What is the maximum banking multiplier?

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

= (1300 - 500) / 2000 x 100%

= 40%

Maximum banking multiplier = 1 / required reserve ratio

= 1 / 40%

= 2.5