Assume that the banking system has total reserves of $475 billion. Assume also that required reserves are 19 percent and that banks do not hold any excess reserves and households hold no currency. What is the size of the M1 money supply? Hint Assume that the banking system has total reserves of $350 billion. Assume also that required reserves are 14 percent and that banks do not hold any excess reserves and households hold no currency. What is money multiplier? Hins