  In this paper the dependence of wealth distribution and the velocity of money
on the required reserve ratio is examined based on a random transfer model of
money and computer simulations. A fractional reserve banking system is
introduced to the model where money creation can be achieved by bank loans and
the monetary aggregate is determined by the monetary base and the required
reserve ratio. It is shown that monetary wealth follows asymmetric Laplace
distribution and latency time of money follows exponential distribution. The
expression of monetary wealth distribution and that of the velocity of money in
terms of the required reserve ratio are presented in a good agreement with
simulation results.
