Scenario 1:

Initial Deposit =
Reserve requirement =
Money Multiplier =
How many banks will it take to go through the multiplier process?
What will the Total New Deposits be?
How much in Total Excess Reserves will there when the multiplier process completes?
How much money will be created?
Bank number

New
Deposits

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

5,000
4,500.00
4,050.00
3,645.00
3,280.50
2,952.45
2,657.21
2,391.48
2,152.34
1,937.10
1,743.39
1,569.05
1,412.15
1,270.93
1,143.84
1,029.46
926.51
833.86
750.47
675.43
607.88
547.09
492.39
443.15
398.83
358.95
323.05
290.75
261.67
235.51
211.96
190.76
171.68
154.52
139.06
125.16
112.64
101.38
91.24
82.12

Required Excess
Reserves Reserves
500
450.00
405.00
364.50
328.05
295.25
265.72
239.15
215.23
193.71
174.34
156.91
141.21
127.09
114.38
102.95
92.65
83.39
75.05
67.54
60.79
54.71
49.24
44.31
39.88
35.89
32.31
29.07
26.17
23.55
21.20
19.08
17.17
15.45
13.91
12.52
11.26
10.14
9.12
8.21

4,500
4,050.00
3,645.00
3,280.50
2,952.45
2,657.21
2,391.48
2,152.34
1,937.10
1,743.39
1,569.05
1,412.15
1,270.93
1,143.84
1,029.46
926.51
833.86
750.47
675.43
607.88
547.09
492.39
443.15
398.83
358.95
323.05
290.75
261.67
235.51
211.96
190.76
171.68
154.52
139.06
125.16
112.64
101.38
91.24
82.12
73.90

5,000
10%
10
133
50,000
45,000
45,000

41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91

73.90
66.51
59.86
53.88
48.49
43.64
39.28
35.35
31.81
28.63
25.77
23.19
20.87
18.79
16.91
15.22
13.69
12.33
11.09
9.98
8.99
8.09
7.28
6.55
5.90
5.31
4.78
4.30
3.87
3.48
3.13
2.82
2.54
2.28
2.06
1.85
1.66
1.50
1.35
1.21
1.09
0.98
0.88
0.80
0.72
0.65
0.58
0.52
0.47
0.42
0.38

7.39
6.65
5.99
5.39
4.85
4.36
3.93
3.53
3.18
2.86
2.58
2.32
2.09
1.88
1.69
1.52
1.37
1.23
1.11
1.00
0.90
0.81
0.73
0.66
0.59
0.53
0.48
0.43
0.39
0.35
0.31
0.28
0.25
0.23
0.21
0.18
0.17
0.15
0.13
0.12
0.11
0.10
0.09
0.08
0.07
0.06
0.06
0.05
0.05
0.04
0.04

66.51
59.86
53.88
48.49
43.64
39.28
35.35
31.81
28.63
25.77
23.19
20.87
18.79
16.91
15.22
13.69
12.33
11.09
9.98
8.99
8.09
7.28
6.55
5.90
5.31
4.78
4.30
3.87
3.48
3.13
2.82
2.54
2.28
2.06
1.85
1.66
1.50
1.35
1.21
1.09
0.98
0.88
0.80
0.72
0.65
0.58
0.52
0.47
0.42
0.38
0.34

92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133

0.34
0.31
0.28
0.25
0.22
0.20
0.18
0.16
0.15
0.13
0.12
0.11
0.10
0.09
0.08
0.07
0.06
0.06
0.05
0.05
0.04
0.04
0.03
0.03
0.03
0.02
0.02
0.02
0.02
0.02
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.00

0.03
0.03
0.03
0.02
0.02
0.02
0.02
0.02
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.31
0.28
0.25
0.22
0.20
0.18
0.16
0.15
0.13
0.12
0.11
0.10
0.09
0.08
0.07
0.06
0.06
0.05
0.05
0.04
0.04
0.03
0.03
0.03
0.02
0.02
0.02
0.02
0.02
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.00
0.00

Scenario 2:
Initial Deposit =
Reserve requirement =
Money Multiplier =
How many banks will it take to go through the multiplier process?
What will the Total New Deposits be?
How much in Total Excess Reserves will there when the multiplier process completes?
How much money will be created?
Bank number

New
Deposits

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

5,000
3000.00
1800.00
1080.00
648.00
388.80
233.28
139.97
83.98
50.39
30.23
18.14
10.88
6.53
3.92
2.35
1.41
0.85
0.51
0.30
0.18
0.11
0.07
0.04
0.02
0.01
0.01
0.01
0.00

Required Excess
Reserves Reserves
2000
1200.00
720.00
432.00
259.20
155.52
93.31
55.99
33.59
20.16
12.09
7.26
4.35
2.61
1.57
0.94
0.56
0.34
0.20
0.12
0.07
0.04
0.03
0.02
0.01
0.01
0.00
0.00
0.00

3,000
1800.00
1080.00
648.00
388.80
233.28
139.97
83.98
50.39
30.23
18.14
10.88
6.53
3.92
2.35
1.41
0.85
0.51
0.30
0.18
0.11
0.07
0.04
0.02
0.01
0.01
0.01
0.00
0.00

5,000
40%
2.5
29
12,500
7,500
7,500