# Can we figured out the total money supply using MB? [closed]

If we look at the total in the federal reserves account Here at the moment is about 3 trillion and if the reserve requirement is 10% does that mean that there is at least 30 trillion out there in money supply?

I know that there can be excess reserves, but give the fact that the reserves have increased dramatically in shot period of time, we can assume that there was a shortage and not excess of supply meaning the 3T were needed to back up around 30T.

• Why do you think they measure M2 etc. if MB was enough? Or are you asking about a deriving just some bounds from M2 from MB (since you say "at least")? You need clarify (at least) what you mean by "total money supply". Apr 28, 2020 at 2:30
• For a (simplified) explanation on the relationship between these see sjsu.edu/faculty/watkins/moneymultiplier.htm (and sjsu.edu/faculty/watkins/money.htm) Apr 28, 2020 at 2:38
• @Fizz I was thinking beyond m2, including m3 and m4 Apr 28, 2020 at 11:39