[dollarbull]

Assuming you'll take the word of the federal reserve iteself, here you go:

http://research.stlouisfed.org/publications/review/69/10/Elements_Oct1969.pdf

"Thus if the banking system has $100 of reserves, and the reserve requirement ratio is 20 per cent (.2), deposits will be $100/.2 or $500. If the banks acquire an additional $1 in reserves (for instance from the Federal Reserve), deposits will increase by $5."

[Toddsterpatriot]

If the banks acquire an additional $1 in reserves (for instance from the Federal Reserve), deposits will increase by $5.

You believe that if a bank gets $1 in reserves as a gift from the Fed that $5 in deposits suddenly appear in the banks accounts? LOL!

Baghdad Bob has nothing on you.

[AndyJackson]

Try explaining to the old Toddstermeister what the Federal Reserve just explained to you. Good luck and LOL!