PART 2*****

Step 5 There is a check drawn against your bank in the amount of $45,000.

Step 6a You make a loan with ALL of your excess reserves. The reserve requirement is 15%.

Step 6b The loans are spent. The checks have all cleared equal to the amount of the loan.

7 - Once the money has passed through the entire banking system, and assuming that all banks lend out all of their excess reserves, then, by how much could the money supply grow?