Assume that banks donot hold excess reserves and that households donot hold currency, so the only form of money is demand deposits. to simplify this analysis. suppose the banking system has total reserves of $300. determine the money multiplier and the money supply for each reserve requirement listed in the following table. Reserve Requirement. Simple Money Multiplier. Money Supply (Percent) (Dollars) 20 1500 10 10 3000 A higher reserve requirement is associated with a ---lower--- money supply