Reserve Ratio of 5% and an initial deposit of $400
Reserve Ratio of 5% and an initial deposit of $400 
*reserveTo save something or set it aside for future use.
A Bank has a Reserve Ratio of 5%
An initial deposit of 400.00
Calculate the money multiplier
Calculate Money Multiplier (m):
| m = | 1 |
| RR |
| m = | 1 |
| 0.05 |
m = 20
Display the table of reserves and loans:
| Bank | Deposit | Reserves | Loan Out |
|---|---|---|---|
| 1 | $400.00 | 400.00 x 5% = $20.00 | 400.00 - 20.00 = $380.00 |
| 2 | $380.00 | 380.00 x 5% = $19.00 | 380.00 - 19.00 = $361.00 |
| 3 | $361.00 | 361.00 x 5% = $18.05 | 361.00 - 18.05 = $342.95 |
| 4 | $342.95 | 342.95 x 5% = $17.15 | 342.95 - 17.15 = $325.80 |
| 5 | $325.80 | 325.80 x 5% = $16.29 | 325.80 - 16.29 = $309.51 |
| 6 | $309.51 | 309.51 x 5% = $15.48 | 309.51 - 15.48 = $294.03 |
| 7 | $294.03 | 294.03 x 5% = $14.70 | 294.03 - 14.70 = $279.33 |
| 8 | $279.33 | 279.33 x 5% = $13.97 | 279.33 - 13.97 = $265.36 |
| 9 | $265.36 | 265.36 x 5% = $13.27 | 265.36 - 13.27 = $252.09 |
| 10 | $252.09 | 252.09 x 5% = $12.60 | 252.09 - 12.60 = $239.49 |
| 11 | $239.49 | 239.49 x 5% = $11.97 | 239.49 - 11.97 = $227.52 |
| 12 | $227.52 | 227.52 x 5% = $11.38 | 227.52 - 11.38 = $216.14 |
| 13 | $216.14 | 216.14 x 5% = $10.81 | 216.14 - 10.81 = $205.33 |
| 14 | $205.33 | 205.33 x 5% = $10.27 | 205.33 - 10.27 = $195.06 |
| 15 | $195.06 | 195.06 x 5% = $9.75 | 195.06 - 9.75 = $185.31 |
| 16 | $185.31 | 185.31 x 5% = $9.27 | 185.31 - 9.27 = $176.04 |
| 17 | $176.04 | 176.04 x 5% = $8.80 | 176.04 - 8.80 = $167.24 |
| 18 | $167.24 | 167.24 x 5% = $8.36 | 167.24 - 8.36 = $158.88 |
| 19 | $158.88 | 158.88 x 5% = $7.94 | 158.88 - 7.94 = $150.94 |
| 20 | $150.94 | 150.94 x 5% = $7.55 | 150.94 - 7.55 = $143.39 |
| 21 | $143.39 | 143.39 x 5% = $7.17 | 143.39 - 7.17 = $136.22 |
| 22 | $136.22 | 136.22 x 5% = $6.81 | 136.22 - 6.81 = $129.41 |
| 23 | $129.41 | 129.41 x 5% = $6.47 | 129.41 - 6.47 = $122.94 |
| 24 | $122.94 | 122.94 x 5% = $6.15 | 122.94 - 6.15 = $116.79 |
| 25 | $116.79 | 116.79 x 5% = $5.84 | 116.79 - 5.84 = $110.95 |
| 26 | $110.95 | 110.95 x 5% = $5.55 | 110.95 - 5.55 = $105.40 |
| 27 | $105.40 | 105.40 x 5% = $5.27 | 105.40 - 5.27 = $100.13 |
| 28 | $100.13 | 100.13 x 5% = $5.01 | 100.13 - 5.01 = $95.12 |
| 29 | $95.12 | 95.12 x 5% = $4.76 | 95.12 - 4.76 = $90.36 |
| 30 | $90.36 | 90.36 x 5% = $4.52 | 90.36 - 4.52 = $85.84 |
| 31 | $85.84 | 85.84 x 5% = $4.29 | 85.84 - 4.29 = $81.55 |
| 32 | $81.55 | 81.55 x 5% = $4.08 | 81.55 - 4.08 = $77.47 |
| 33 | $77.47 | 77.47 x 5% = $3.87 | 77.47 - 3.87 = $73.60 |
| 34 | $73.60 | 73.60 x 5% = $3.68 | 73.60 - 3.68 = $69.92 |
| 35 | $69.92 | 69.92 x 5% = $3.50 | 69.92 - 3.50 = $66.42 |
| 36 | $66.42 | 66.42 x 5% = $3.32 | 66.42 - 3.32 = $63.10 |
| 37 | $63.10 | 63.10 x 5% = $3.16 | 63.10 - 3.16 = $59.94 |
| 38 | $59.94 | 59.94 x 5% = $3.00 | 59.94 - 3.00 = $56.94 |
| 39 | $56.94 | 56.94 x 5% = $2.85 | 56.94 - 2.85 = $54.09 |
| 40 | $54.09 | 54.09 x 5% = $2.70 | 54.09 - 2.70 = $51.39 |
| 41 | $51.39 | 51.39 x 5% = $2.57 | 51.39 - 2.57 = $48.82 |
| 42 | $48.82 | 48.82 x 5% = $2.44 | 48.82 - 2.44 = $46.38 |
| 43 | $46.38 | 46.38 x 5% = $2.32 | 46.38 - 2.32 = $44.06 |
| 44 | $44.06 | 44.06 x 5% = $2.20 | 44.06 - 2.20 = $41.86 |
| 45 | $41.86 | 41.86 x 5% = $2.09 | 41.86 - 2.09 = $39.77 |
| 46 | $39.77 | 39.77 x 5% = $1.99 | 39.77 - 1.99 = $37.78 |
| 47 | $37.78 | 37.78 x 5% = $1.89 | 37.78 - 1.89 = $35.89 |
| 48 | $35.89 | 35.89 x 5% = $1.79 | 35.89 - 1.79 = $34.10 |
| 49 | $34.10 | 34.10 x 5% = $1.71 | 34.10 - 1.71 = $32.39 |
| 50 | $32.39 | 32.39 x 5% = $1.62 | 32.39 - 1.62 = $30.77 |
| 51 | $30.77 | 30.77 x 5% = $1.54 | 30.77 - 1.54 = $29.23 |
| 52 | $29.23 | 29.23 x 5% = $1.46 | 29.23 - 1.46 = $27.77 |
| 53 | $27.77 | 27.77 x 5% = $1.39 | 27.77 - 1.39 = $26.38 |
| 54 | $26.38 | 26.38 x 5% = $1.32 | 26.38 - 1.32 = $25.06 |
| 55 | $25.06 | 25.06 x 5% = $1.25 | 25.06 - 1.25 = $23.81 |
| 56 | $23.81 | 23.81 x 5% = $1.19 | 23.81 - 1.19 = $22.62 |
| 57 | $22.62 | 22.62 x 5% = $1.13 | 22.62 - 1.13 = $21.49 |
| 58 | $21.49 | 21.49 x 5% = $1.07 | 21.49 - 1.07 = $20.42 |
| 59 | $20.42 | 20.42 x 5% = $1.02 | 20.42 - 1.02 = $19.40 |
| 60 | $19.40 | 19.40 x 5% = $0.97 | 19.40 - 0.97 = $18.43 |
| 61 | $18.43 | 18.43 x 5% = $0.92 | 18.43 - 0.92 = $17.51 |
| 62 | $17.51 | 17.51 x 5% = $0.88 | 17.51 - 0.88 = $16.63 |
| 63 | $16.63 | 16.63 x 5% = $0.83 | 16.63 - 0.83 = $15.80 |
| 64 | $15.80 | 15.80 x 5% = $0.79 | 15.80 - 0.79 = $15.01 |
| 65 | $15.01 | 15.01 x 5% = $0.75 | 15.01 - 0.75 = $14.26 |
| 66 | $14.26 | 14.26 x 5% = $0.71 | 14.26 - 0.71 = $13.55 |
| 67 | $13.55 | 13.55 x 5% = $0.68 | 13.55 - 0.68 = $12.87 |
| 68 | $12.87 | 12.87 x 5% = $0.64 | 12.87 - 0.64 = $12.23 |
| 69 | $12.23 | 12.23 x 5% = $0.61 | 12.23 - 0.61 = $11.62 |
| 70 | $11.62 | 11.62 x 5% = $0.58 | 11.62 - 0.58 = $11.04 |
| 71 | $11.04 | 11.04 x 5% = $0.55 | 11.04 - 0.55 = $10.49 |
| 72 | $10.49 | 10.49 x 5% = $0.52 | 10.49 - 0.52 = $9.97 |
| 73 | $9.97 | 9.97 x 5% = $0.50 | 9.97 - 0.50 = $9.47 |
| 74 | $9.47 | 9.47 x 5% = $0.47 | 9.47 - 0.47 = $9.00 |
| 75 | $9.00 | 9.00 x 5% = $0.45 | 9.00 - 0.45 = $8.55 |
| 76 | $8.55 | 8.55 x 5% = $0.43 | 8.55 - 0.43 = $8.12 |
| 77 | $8.12 | 8.12 x 5% = $0.41 | 8.12 - 0.41 = $7.71 |
| 78 | $7.71 | 7.71 x 5% = $0.39 | 7.71 - 0.39 = $7.32 |
| 79 | $7.32 | 7.32 x 5% = $0.37 | 7.32 - 0.37 = $6.95 |
| 80 | $6.95 | 6.95 x 5% = $0.35 | 6.95 - 0.35 = $6.60 |
| 81 | $6.60 | 6.60 x 5% = $0.33 | 6.60 - 0.33 = $6.27 |
| 82 | $6.27 | 6.27 x 5% = $0.31 | 6.27 - 0.31 = $5.96 |
| 83 | $5.96 | 5.96 x 5% = $0.30 | 5.96 - 0.30 = $5.66 |
| 84 | $5.66 | 5.66 x 5% = $0.28 | 5.66 - 0.28 = $5.38 |
| 85 | $5.38 | 5.38 x 5% = $0.27 | 5.38 - 0.27 = $5.11 |
| 86 | $5.11 | 5.11 x 5% = $0.26 | 5.11 - 0.26 = $4.85 |
| 87 | $4.85 | 4.85 x 5% = $0.24 | 4.85 - 0.24 = $4.61 |
| 88 | $4.61 | 4.61 x 5% = $0.23 | 4.61 - 0.23 = $4.38 |
| 89 | $4.38 | 4.38 x 5% = $0.22 | 4.38 - 0.22 = $4.16 |
| 90 | $4.16 | 4.16 x 5% = $0.21 | 4.16 - 0.21 = $3.95 |
| 91 | $3.95 | 3.95 x 5% = $0.20 | 3.95 - 0.20 = $3.75 |
| 92 | $3.75 | 3.75 x 5% = $0.19 | 3.75 - 0.19 = $3.56 |
| 93 | $3.56 | 3.56 x 5% = $0.18 | 3.56 - 0.18 = $3.38 |
| 94 | $3.38 | 3.38 x 5% = $0.17 | 3.38 - 0.17 = $3.21 |
| 95 | $3.21 | 3.21 x 5% = $0.16 | 3.21 - 0.16 = $3.05 |
| 96 | $3.05 | 3.05 x 5% = $0.15 | 3.05 - 0.15 = $2.90 |
| 97 | $2.90 | 2.90 x 5% = $0.14 | 2.90 - 0.14 = $2.76 |
| 98 | $2.76 | 2.76 x 5% = $0.14 | 2.76 - 0.14 = $2.62 |
| 99 | $2.62 | 2.62 x 5% = $0.13 | 2.62 - 0.13 = $2.49 |
| 100 | $2.49 | 2.49 x 5% = $0.12 | 2.49 - 0.12 = $2.37 |
| 101 | $2.37 | 2.37 x 5% = $0.12 | 2.37 - 0.12 = $2.25 |
| 102 | $2.25 | 2.25 x 5% = $0.11 | 2.25 - 0.11 = $2.14 |
| 103 | $2.14 | 2.14 x 5% = $0.11 | 2.14 - 0.11 = $2.03 |
| 104 | $2.03 | 2.03 x 5% = $0.10 | 2.03 - 0.10 = $1.93 |
| 105 | $1.93 | 1.93 x 5% = $0.10 | 1.93 - 0.10 = $1.83 |
| 106 | $1.83 | 1.83 x 5% = $0.09 | 1.83 - 0.09 = $1.74 |
| 107 | $1.74 | 1.74 x 5% = $0.09 | 1.74 - 0.09 = $1.65 |
| 108 | $1.65 | 1.65 x 5% = $0.08 | 1.65 - 0.08 = $1.57 |
| 109 | $1.57 | 1.57 x 5% = $0.08 | 1.57 - 0.08 = $1.49 |
| 110 | $1.49 | 1.49 x 5% = $0.07 | 1.49 - 0.07 = $1.42 |
| 111 | $1.42 | 1.42 x 5% = $0.07 | 1.42 - 0.07 = $1.35 |
| 112 | $1.35 | 1.35 x 5% = $0.07 | 1.35 - 0.07 = $1.28 |
| 113 | $1.28 | 1.28 x 5% = $0.06 | 1.28 - 0.06 = $1.22 |
| 114 | $1.22 | 1.22 x 5% = $0.06 | 1.22 - 0.06 = $1.16 |
| 115 | $1.16 | 1.16 x 5% = $0.06 | 1.16 - 0.06 = $1.10 |
| 116 | $1.10 | 1.10 x 5% = $0.05 | 1.10 - 0.05 = $1.05 |
| 117 | $1.05 | 1.05 x 5% = $0.05 | 1.05 - 0.05 = $1.00 |
| Totals | $7,979.75 | $399.00 | $7,580.75 |
Final Answer
m = 20
You have 1 free calculations remaining
What is the Answer?
How does the Money Multiplier Calculator work?
Free Money Multiplier Calculator - Given a reserve ratio and initial deposit amount, this calculates the money multiplier and displays the re-lending process table for a bank to other banks including reserves and loans.
This calculator has 2 inputs.
What 1 formula is used for the Money Multiplier Calculator?
What 7 concepts are covered in the Money Multiplier Calculator?
currencya system of money in general use in a particular country.deposita sum of money placed or kept in a bank account, usually to gain interest.loana thing that is borrowed, especially a sum of money that is expected to be paid back with interest.moneyAny item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxesmoney multiplierA one-dollar increase in the monetary base causes the money supply to increase by more than one dollar. The increase in the money supply is the money multiplier.multiplyto add equal groups*reserveTo save something or set it aside for future use.
Money Multiplier Calculator Video
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