∆M = 100 1−(1− f) = 100 f = 1000. Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the money multiplier. b.Determine the money multiplier and the money supply for each reserve requirement listed in the following table. What is the deposit multiplier? What is the total decrease in deposits in the banking system? We recommend that textbook authors and teachers eliminate the use of the money multiplier concept in explaining the linkage between banks and the Fed. In this video I explain the reserve requirement, the money multiplier, and how money is created. A) Complete the balance sheet of Good Fortune Bank. B) By how much do the liabilities increase? What does this imply the required reserve ratio for commercial banks in the United States?