What determines the size of the money multiplier?

Answer:

The reserve ratio is in the denominator in the money multiplier formula, hence there is an inverse relationship between the money multiplier and the reserve ratio. Consequently, a higher reserve ratio implies a lower money multiplier and a ______________ reserve ratio implies a higher money multiplier.

How much money can the whole banking system create?

Answer:

The whole banking system can increase the money supply by the initial increase in ______________ reserves after a new cash deposit in the banking system, times the money multiplier.