In Tushar's Land there are no banks and all he keeps money in cash form-total money supply being $130. One day the first bank opens up and he deposit the total money supply in the bank. In the meantime, the first central bank-The Bank opens up and set a reserve ratio of 20%. With t-accounts and detailed explanations show how through a system of lending money the banking system can create money supply in the economy (you have to use the example of total of three banks).