aaron,
The documentary said $1,111.12. Remember in the example on the video the $1,111.12 is the amount of reserves the bank has deposited at the central bank not customers deposits as we are talking about above. A reserve ratio of 9:1 exists on this money enabling the bank to legally lend out 9 times this amount or $10,000.
In the video example the $10,000 is credited to a borrower's account who then draws on it to buy a car. The seller of the car then deposits the $10,000 into her bank.
This is where you are probably getting a little confused. Unlike the reserves at the central bank. The customers deposit cannot be loaned out at 9:1 but rather at the inverse ie. 0.9. Thus $9,000 of the $10,000 can be loaned out. Then that $9,000 is deposited at another or the same bank and 0.9 of that can be loaned out - $8100. Thus each deposit can be lent at slightly smaller amounts in an infinitely decreasing series.
