Scenario 1:

Initial Deposit = 5,000

Reserve requirement = 10%
Money Multiplier = 1/.1=10
How many banks will it take to go through the multiplier process? 133
What will the Total New Deposits be? $50,000.00
How much in Total Excess Reserves will there when the multiplier process completes? $45,000.00
How much money will be created? $45,000.00

Bank number New Required Excess

1 $5,000.00 $500.00 $4,500.00
Deposits Reserves Reserves
2 $4,500.00 $450.00 $4,050.00
3 $4,050.00 $405.00 $3,645.00
4 $3,645.00 $364.50 $3,280.50
5 $3,280.50 $328.05 $2,952.45
6 $2,952.45 $295.25 $2,657.21
7 $2,657.21 $265.72 $2,391.48
8 $2,391.48 $239.15 $2,152.34
9 $2,152.34 $215.23 $1,937.10
10 $1,937.10 $193.71 $1,743.39
11 $1,743.39 $174.34 $1,569.05
12 $1,569.05 $156.91 $1,412.15
13 $1,412.15 $141.21 $1,270.93
14 $1,270.93 $127.09 $1,143.84
15 $1,143.84 $114.38 $1,029.46
16 $1,029.46 $102.95 $926.51
17 $926.51 $92.65 $833.86
18 $833.86 $83.39 $750.47
19 $750.47 $75.05 $675.43
20 $675.43 $67.54 $607.88
21 $607.88 $60.79 $547.09
22 $547.09 $54.71 $492.39
23 $492.39 $49.24 $443.15
24 $443.15 $44.31 $398.83
25 $398.83 $39.88 $358.95
26 $358.95 $35.89 $323.05
27 $323.05 $32.31 $290.75
28 $290.75 $29.07 $261.67
29 $261.67 $26.17 $235.51
30 $235.51 $23.55 $211.96
31 $211.96 $21.20 $190.76
32 $190.76 $19.08 $171.68
33 $171.68 $17.17 $154.52
34 $154.52 $15.45 $139.06
35 $139.06 $13.91 $125.16
36 $125.16 $12.52 $112.64
37 $112.64 $11.26 $101.38
38 $101.38 $10.14 $91.24
39 $91.24 $9.12 $82.12
40 $82.12 $8.21 $73.90
41 $73.90 $7.39 $66.51
42 $66.51 $6.65 $59.86
43 $59.86 $5.99 $53.88
44 $53.88 $5.39 $48.49
45 $48.49 $4.85 $43.64
46 $43.64 $4.36 $39.28
47 $39.28 $3.93 $35.35
48 $35.35 $3.53 $31.81
49 $31.81 $3.18 $28.63
50 $28.63 $2.86 $25.77
51 $25.77 $2.58 $23.19
52 $23.19 $2.32 $20.87
53 $20.87 $2.09 $18.79
54 $18.79 $1.88 $16.91
55 $16.91 $1.69 $15.22
56 $15.22 $1.52 $13.69
57 $13.69 $1.37 $12.33
58 $12.33 $1.23 $11.09
59 $11.09 $1.11 $9.98
60 $9.98 $1.00 $8.99
61 $8.99 $0.90 $8.09
62 $8.09 $0.81 $7.28
63 $7.28 $0.73 $6.55
64 $6.55 $0.66 $5.90
65 $5.90 $0.59 $5.31
66 $5.31 $0.53 $4.78
67 $4.78 $0.48 $4.30
68 $4.30 $0.43 $3.87
 69 $3.87 $0.39 $3.48
70 $3.48 $0.35 $3.13
71 $3.13 $0.31 $2.82
72 $2.82 $0.28 $2.54
73 $2.54 $0.25 $2.28
74 $2.28 $0.23 $2.06
75 $2.06 $0.21 $1.85
76 $1.85 $0.18 $1.66
77 $1.66 $0.17 $1.50
78 $1.50 $0.15 $1.35
79 $1.35 $0.13 $1.21
80 $1.21 $0.12 $1.09
81 $1.09 $0.11 $0.98
82 $0.98 $0.10 $0.88
83 $0.88 $0.09 $0.80
84 $0.80 $0.08 $0.72
85 $0.72 $0.07 $0.65
86 $0.65 $0.06 $0.58
87 $0.58 $0.06 $0.52
88 $0.52 $0.05 $0.47
89 $0.47 $0.05 $0.42
90 $0.42 $0.04 $0.38
91 $0.38 $0.04 $0.34
92 $0.34 $0.03 $0.31
93 $0.31 $0.03 $0.28
94 $0.28 $0.03 $0.25
95 $0.25 $0.02 $0.22
96 $0.22 $0.02 $0.20
97 $0.20 $0.02 $0.18
98 $0.18 $0.02 $0.16
99 $0.16 $0.02 $0.15
100 $0.15 $0.01 $0.13
101 $0.13 $0.01 $0.12
102 $0.12 $0.01 $0.11
103 $0.11 $0.01 $0.10
104 $0.10 $0.01 $0.09
105 $0.09 $0.01 $0.08
106 $0.08 $0.01 $0.07
107 $0.07 $0.01 $0.06
108 $0.06 $0.01 $0.06
109 $0.06 $0.01 $0.05
110 $0.05 $0.01 $0.05
111 $0.05 $0.00 $0.04
112 $0.04 $0.00 $0.04
113 $0.04 $0.00 $0.03
114 $0.03 $0.00 $0.03
115 $0.03 $0.00 $0.03
116 $0.03 $0.00 $0.02
117 $0.02 $0.00 $0.02
118 $0.02 $0.00 $0.02
119 $0.02 $0.00 $0.02
120 $0.02 $0.00 $0.02
121 $0.02 $0.00 $0.01
122 $0.01 $0.00 $0.01
123 $0.01 $0.00 $0.01
124 $0.01 $0.00 $0.01
125 $0.01 $0.00 $0.01
126 $0.01 $0.00 $0.01
127 $0.01 $0.00 $0.01
128 $0.01 $0.00 $0.01
129 $0.01 $0.00 $0.01
130 $0.01 $0.00 $0.01
131 $0.01 $0.00 $0.01
132 $0.01 $0.00 $0.00
133 $0.00 $0.00 $0.00
 Scenario 2:
Initial Deposit = 5,000
Reserve requirement = 40%
Money Multiplier = 2.5
How many banks will it take to go through the multiplier process? 29
What will the Total New Deposits be? $12,500.00
How much in Total Excess Reserves will there when the multiplier process completes? $5,000.00
How much money will be created? $7,500.00

Bank number New Required Excess

1 $5,000.00 ### $3,000.00
Deposits Reserves Reserves
2 $3,000.00 ### $1,800.00
3 $1,800.00 $720.00 $1,080.00
4 $1,080.00 $432.00 $648.00
5 $648.00 $259.20 $388.80
6 $388.80 $155.52 $233.28
7 $233.28 $93.31 $139.97
8 $139.97 $55.99 $83.98
9 $83.98 $33.59 $50.39
10 $50.39 $20.16 $30.23
11 $30.23 $12.09 $18.14
12 $18.14 $7.26 $10.88
13 $10.88 $4.35 $6.53
14 $6.53 $2.61 $3.92
15 $3.92 $1.57 $2.35
16 $2.35 $0.94 $1.41
17 $1.41 $0.56 $0.85
18 $0.85 $0.34 $0.51
19 $0.51 $0.20 $0.30
20 $0.30 $0.12 $0.18
21 $0.18 $0.07 $0.11
22 $0.11 $0.04 $0.07
23 $0.07 $0.03 $0.04
24 $0.04 $0.02 $0.02
25 $0.02 $0.01 $0.01
26 $0.01 $0.01 $0.01
27 $0.01 $0.00 $0.01
28 $0.01 $0.00 $0.00
29 $0.00 $0.00 $0.00