A bank loans or invests its excess reserves to earn more interest. The money multiplier is one over the reserve ratio if money comes into a bank it'll get loaned out and loaned out and loaned out.A. Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the money multiplier. b. Complete the table below demonstrating your knowledge of bank reserves and the power of the money multiplier. The money multiplier measures the extent to which an initial deposit multiplies due to banks lending out a portion of that deposit. A client wants you to project changes in M1 given likely increases in the monetary base. Money multiplier shows the ratio of change in total money supply due to a given change in the quantity of high powered money.