I don't understand where the numbers are coming from and why at the bottom left hand corner of the last picture $400 is being taken out of loans in the first place?

14.6.2019 Practice Problem. of At the opening of a business day, Granite State Bank has excess reserves $25'000, and the reserve requirement is 20%. During the day, a'total of $5'000 of new loans is granted, $6'000 of outstanding loans is repaid, and a net of $5'000 of demand deposits is withdrawn in currency. What will Granite State Bank have at the end of the business day in its excess reserve account? Please be sure to write out the T-account for each transaction opening up a DD for person making a loan Econ 401 A Fali pie M. Herold December 5, 2014 Answer to homework HW8+ due Mo. November 24 This homework was based upon material covered in a lecture and to a lesser degree also in Krugman. You are asked to determine excess reserves at the end of the day of banking. The reserve ratio,r, is given as 20% Excess reserves at the start of the day $25,000 Now work through the 3 transactions using the Taccounts method: (@). $5,000 new loan granted by opening a line of credit Ithat is, DD) : +5,000 represerves + 1,000 4+ DD + 5000 - 1000 06) 60 of outstanding to es repard neo loan exc.res -$1,000 ex.ru loans +6,000 - 6,000 (+$6,000 (4 $5000 of Do withdrawn in cash PD -5,000 req, res. - 1,000 exc. res. -4,000 (54000 $ go down by 4,000 AZ of 5,000 excess reseNes, - total rosenes-50, at the end of the day wuss reserves in the bant qk +25,000 - $1,000 + $6,000 - $4,000 = $ 26,0902 excess resones required reserves lipo Playing with cold T-CMS-> bannwant to be found bahut to be the maximum 70 pm act Listiwal Iim borrows $800 do loco E res. d DD +1000 DD 1000 Fire +200 res ctless 10 regi 200 exler given: - 20% point Toni uputsar 1 0 loans loans 800 locu Jono 1000 100 Hary with north four YAN 500 rest UDD -500 100 YOUR SMARTPHOI CLOSE ye loans 800- You = Hool .... QEYS Spo sro 579 50 CAN Fed. Resome Many gets $400 T son new pupaes, des. M1 = cash/ arrency + DD, V > 7 ones, pero bet it's changing gourners OMOS T-accounts 14.6.2019 Practice Problem. of At the opening of a business day, Granite State Bank has excess reserves $25'000, and the reserve requirement is 20%. During the day, a'total of $5'000 of new loans is granted, $6'000 of outstanding loans is repaid, and a net of $5'000 of demand deposits is withdrawn in currency. What will Granite State Bank have at the end of the business day in its excess reserve account? Please be sure to write out the T-account for each transaction opening up a DD for person making a loan Econ 401 A Fali pie M. Herold December 5, 2014 Answer to homework HW8+ due Mo. November 24 This homework was based upon material covered in a lecture and to a lesser degree also in Krugman. You are asked to determine excess reserves at the end of the day of banking. The reserve ratio,r, is given as 20% Excess reserves at the start of the day $25,000 Now work through the 3 transactions using the Taccounts method: (@). $5,000 new loan granted by opening a line of credit Ithat is, DD) : +5,000 represerves + 1,000 4+ DD + 5000 - 1000 06) 60 of outstanding to es repard neo loan exc.res -$1,000 ex.ru loans +6,000 - 6,000 (+$6,000 (4 $5000 of Do withdrawn in cash PD -5,000 req, res. - 1,000 exc. res. -4,000 (54000 $ go down by 4,000 AZ of 5,000 excess reseNes, - total rosenes-50, at the end of the day wuss reserves in the bant qk +25,000 - $1,000 + $6,000 - $4,000 = $ 26,0902 excess resones required reserves lipo Playing with cold T-CMS-> bannwant to be found bahut to be the maximum 70 pm act Listiwal Iim borrows $800 do loco E res. d DD +1000 DD 1000 Fire +200 res ctless 10 regi 200 exler given: - 20% point Toni uputsar 1 0 loans loans 800 locu Jono 1000 100 Hary with north four YAN 500 rest UDD -500 100 YOUR SMARTPHOI CLOSE ye loans 800- You = Hool .... QEYS Spo sro 579 50 CAN Fed. Resome Many gets $400 T son new pupaes, des. M1 = cash/ arrency + DD, V > 7 ones, pero bet it's changing gourners OMOS T-accounts