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pls did all correctThanks a Search this coun Aplia Homework: Chapter 10 Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all
pls did all correctThanks
a Search this coun Aplia Homework: Chapter 10 Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 10%. The Bank of Canada buys a government bond worth $500,000 from Darnell, a client of First Main Street Bank. He deposits the money into his chequing account at First Main Street Bank. Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans). Assets Liabilities Building and Romture $50,000 $50,000 Deposits Building and furniture $450,000 $450,000 Loans $500,000 $500,000 Deposits Net worth $1,100,000 $1,100,000 Loans ca Je to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 10%. Net worth tive, be sure to enter the value as a negative number. Reserves hange in Excess Reserves (Dollars) Change in Required Reserves (Dollars) (Dollars) 500,000 Now, suppose First Main Street Bank loans out all of its new excess reserves to Beth, who immediately uses the funds to write a cheque to Andrew ndrew deposits the funds immediately into his chequing account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Darnell, who writes a cheque to Eleanor, who deposits the money into her account at Third Fidelity Bank. Third Fidelity lends out all of its new excess reserves to Kyoko as well, On w atv ce A Hed Aplia Homework Chapter 10 Hint: If the change is negative, be sure to enter the value as a negative number Amount Deposited (Dollars) 500,000 Change in Excess Reserves (Dollars) Change in Required Reserves (Dollars) Now, suppose First Main Street Bank loans out all of its new excess reserves to Beth, who immediately uses the funds to write a cheque to Andrew. a Andrew deposits the funds immediately into his chequing account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Damell, who writes a cheque to Eleanor, who deposits the money into her account at Third Fidelity Bank. Third Fidelity lends out all of its new excess reserves to Kyoko as well. Fill in the following table to show the effect of this ongoing chain of events at each bank. Enter each answer to the nearest dollar. Increase in Deposits (Dollars) Increase in Required Reserves (Dollars) Increase in Loans (Dollars) First Main Street Bank $500,000 Second Republic Bank Third Fidelity Bank $4,500,000 $5,000,000 Assume this process continues, with each successive loan deposited into a chequing account assumptions, the $500,000 injection into the money supply results in an overall increase of keeping any excess reserves. Under these in demand deposits Step by Step Solution
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