1. In the hypothetical country of Westlandia, banks are required to hold 20% of checkable deposits as reserves. The public holds 50% of the loans as currency in circulation and redeposits the remaining 50% percent of the loans.

a. Complete the table (calculations should be to no more than two decimal places).

Round	Deposits	Required Reserves of 20%	Excess Reserves	New Loans	50% of loan proceeds are held as currency in circulation by people	Loan proceeds redeposited
1	$500	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)
2	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)
3	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)
4	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)
5	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)
6	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)
7	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)
8	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)
9	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)
10	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)
Totals	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)	(Enter your response here.)

b. Calculate the new money supply.

(Enter your response here.)