[Toddsterpatriot]

To calculate the effect of the multiplier effect on the money supply, start with the amount banks initially take in through deposits, and divide this by the reserve ratio. If, for example, the reserve requirement is 20%, for every $100 a customer deposits into a bank, $20 must be kept in reserve. However, the remaining $80 can be loaned out to other bank customers.

Thanks again for the link.

The $80 loan is fully funded by the $100 deposit.

Now if you find a decent source that shows the $100 deposit funds a $1000 loan, I'd love to see it.

Good night.

[Garth Tater]

You are hopeless Todd. I’m not going to waste any more time on your education. Have a nice day.