Assume that the banking system has total reserves of $720 billion. Assume also that required reserves are 24 percent and that banks do not hold any excess reserves and households hold no currency. What is the level of deposits? Hint Assume that the banking system has total reserves of $858 billion. Assume also that required reserves are 33 percent and that banks do not hold any excess reserves and households hold no currency. Now suppose that the Fed increased the required reserves to 39.6. What is the new multiplier? Hint