Assume that the required reserve ratio is set at 0.5. What is the value of the money (deposit) multiplier? value of money multiplier: Suppose that a bank holds no excess reserves and receives a deposit from a customer of $300. How does this impact the money supply? increase in money supply: $ Which statement is a consequence of fractional reserve banking? Fractional reserve banking implies that private banks have a role in making changes to the money supply. Control of the required reserve ratio gives the Fed a tool that can be used to implement fiscal policy. Fractional reserve banking ensures that private banks make a profit.