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
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
41
42
43
44
45

New
Deposits
5,000
4,500
4,050
3,645
3,281
2,952
2,657
2,391
2,152
1,937
1,743
1,569
1,412
1,271
1,144
1,029
927
834
750
675
608
547
492
443
399
359
323
291
262
236
212
191
172
155
139
125
113
101
91
82
74
67
60
54
48

Required Excess
Reserves Reserves
500
4,500
450
4,050
405
3,645
364.5
3,281
328.05
2,952
295.245
2,657
265.7205
2,391
239.1485
2,152
215.2336
1,937
193.7102
1,743
174.3392
1,569
156.9053
1,412
141.2148
1,271
127.0933
1,144
114.384
1,029
102.9456
927
92.65101
834
83.38591
750
75.04732
675
67.54259
608
60.78833
547
54.70949
492
49.23855
443
44.31469
399
39.88322
359
35.8949
323
32.30541
291
29.07487
262
26.16738
236
23.55064
212
21.19558
191
19.07602
172
17.16842
155
15.45158
139
13.90642
125
12.51578
113
11.2642
101
10.13778
91
9.124002
82
8.211602
74
7.390441
67
6.651397
60
5.986258
54
5.387632
48
4.848869
44

5,000
10%
10
89
500
50,000
45,000

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
92

44
39
35
32
29
26
23
21
19
17
15
14
12
11
10
9
8
7
7
6
5
5
4
4
3
3
3
3
2
2
2
2
1
1
1
1
1
1
1
1
1
1
1
0
0
0
0

4.363982
3.927584
3.534825
3.181343
2.863208
2.576888
2.319199
2.087279
1.878551
1.690696
1.521626
1.369464
1.232517
1.109266
0.998339
0.898505
0.808655
0.727789
0.65501
0.589509
0.530558
0.477502
0.429752
0.386777
0.348099
0.313289
0.28196
0.253764
0.228388
0.205549
0.184994
0.166495
0.149845
0.134861
0.121375
0.109237
0.098314
0.088482
0.079634
0.071671
0.064504
0.058053
0.052248
0.047023
0.042321
0.038089
0.03428

39
35
32
29
26
23
21
19
17
15
14
12
11
10
9
8
7
7
6
5
5
4
4
3
3
3
3
2
2
2
2
1
1
1
1
1
1
1
1
1
1
1
0
0
0
0
0

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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

New
Deposits
5,000
3,000
1,800
1,080
648
389
233
140
84
50
30
18
11
7
4
2
1
1
1
0
0
0

Required Excess
Reserves Reserves
2000
3,000
1200
1,800
720
1,080
432
648
259.2
389
155.52
233
93.312
140
55.9872
84
33.59232
50
20.15539
30
12.09324
18
7.255941
11
4.353565
7
2.612139
4
1.567283
2
0.94037
1
0.564222
1
0.338533
1
0.20312
0
0.121872
0
0.073123
0
0.043874
0

5,000
40%
2.5
20
12,500
75,500
7,500