this article is just wrong. cash reserves deposited at a central bank allow banks to MULTIPLY their money by the reserve requirement. 1 dollar may be turned into 9 with a 1:9 ratio. 

if the chequebook money created by the bank is deposited at another bank they are now required to keep a portion of it as a reserve. see

http://uk.youtube.com/watch?v=hfXavRTM4Fg&feature;=related

why can't i edit the article to make it accurate?