Consider a new deposit to the Canadian banking system of $$1000.$ Suppose all commercial banks have a target reserve ratio of $12$ percent and there is no cash drain. The following table shows how deposits, reserves, and loans change as the new deposit permits the banks to create money.

$\backslash$table$[[$Round$,$ Deposits,$$ Reserves,$$ Loans$],[$First$,$$$1000,$$$120,$$$880$

Consider a new deposit to the Canadian banking system of $$1000.$ Suppose all commercial banks have a target reserve ratio of $12$ percent and there is no cash drain. The following table shows how deposits, reserves, and loans change as the new deposit permits the banks to create money.

$\backslash$table$[[$Round$,$ Deposits,$$ Reserves,$$ Loans$],[$First$,$$$1000,$$$120,$$$880$