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Suppose First Main Strect Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 10st, Charles, a

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Suppose First Main Strect Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 10st, Charles, a client of First Main Street Bank, deposits $250,000 into his checking account at First. Main Street Bank. Complete the following table to reffect any changes in First Main Street Bank's T-account (betore the bank makes any new loans). Complete the following table to show the effect of a new deposit on excess and redulred reserves when the recuired raserve rato is 10%. Hint: If the change is negative, be sure to enter the value as negative number. Now, suppose First Main Street Bank loans out all of its new excess reserves to Ana, who immediately uses the funds to write a check to Yakov. Yakov deposits the funds immediately into his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Gilberto, who writes a check to Dina, who deposits the money into her account at Third Fidelity Bank. Third Fidelity lends out all of its new excess reserves to Juanita in turn. 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. Assume this process continues, with each seccessive loan deposited into a checking account and no banks keecing any excess reservesi Under thice assumptions, the $250,000 injection into the money supply results in an overall increase of

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