If you can help me that will be amazing!
7. The money creation process Suppose Southeast Mutual Bank, Walis Fergo Bank, and PJMorton Bank all have zero excess reserves, The required reserve ratio is presentiy set at 10\%. Sean, a Southeast Mutual Bank customer, deposits $250,000 into his checking account at the local branch. Complete the following table to reflect any changes in Southeast Mutual Bank's T-account (before the bank makes any new loans). Now, suppose Southeast Mutual Bank loans out all of its new excess reserves to Rina, who immediately uses the funds to write a check to Musashi. Musashi deposits the funds immediately into his checking account at Walls Fergo Bank. Then Wals Fergo Bank lends out all of its new excess reserves to Bob, who writes a check to Wvette, who deposits the maney into her account at PJMorton Bank. PMMorton lends out all of its new excess resecves to 7. The money creation process Suppose Southeast Mutual Bank, Walls Fergo Bank, and P3Morton Bank all have zero excess reserves. The required reserve ratio is presently set at 10%. Sean, a Southeast Mutual Bank customer, deposits $250,000 into his checking account at the local branch. Complete the following table to reflect any changes in Southeast Mutual Bank's T-account (before the bank makes any new loans). Now, suppose Southeast Mutual Bank loans out all of its new excess reserves to Rino, who immediately uses the funds to write a check to Musashi. Musashi deposits the funds immediately into his checking account at Walls Fergo Bank. Then Walls Fergo Bank lends out all of its new excess reserves to Bob, who writes a check to Yvette, who deposits the money into her account at PJMorton Bank. PJMorton lends out all of its new excess reserves to Cho in turn. Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is ros. Hint: If the change is negative, be sure to enter the value as negalive number: Now, suppose Southeas, Mutual Bank loans out al of its new excess reserves to Rine, who immediately uses the funds to write a check to Mucati. Musashi deposhs the funds immediately into his checking account at Walls Fergo Bark. Then Walls Fergo Rank lends eut all of its new excess reserves to Bob, who writes a check to Wvette, who deposits the money into her account at pjMorton Bank. PJMortoo lends out all of its new excess reserves to Cho in turn. Fill in the fowowing table to show the effect of this ongoing chain af events at each bank. Enter each dosmer to the nearest dallar. Assume this process continues, with each successive losn deposited into a checking account and no banks keeping any excess reserves- Under these assumptions, the $250,000 injection into the money supply results in on overafl increase of
