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Suppose Southeast Mutual Bank, Walls Fergo Bank, and PaMorton Bank all have zero excess reserves. The required reserve ratio is presenty set at 25%, Yako4,

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Suppose Southeast Mutual Bank, Walls Fergo Bank, and PaMorton Bank all have zero excess reserves. The required reserve ratio is presenty set at 25\%, Yako4, a Southeast Mutual Bank customer, depovits $1,800,000 into his checking account at the iocal branch Complete the following table to reflect any changes in Southeast Mutuat Bank's T-account (before the bunk makes any new loans). Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 25%. Hint: it the change l s negative, be sure to enter the value as negstive number: Now, suppose Southeast Mutual Bank loans out all of its new excess reserves to Simone, who immediately uses the funds to write a check to Raj/ Rajr 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 Charles, who writes a check to Ano, who deposits the money into her account at PJMorton Bank, PJMorton lends out all of its new excess reterves to Dina in turn. Fili in the following table fo show the effect of this ongoing chain of events at each bank. Enter each answer to the nearest dollar. Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 25%. Hint: If the change is negative, be sure to enter the value as negative number. Now, suppose Southeast Mutual Bank loans out all of its new excess reserves to Simone, who immediately uses the funds to write a check to Rajly, Rajiv deposits the funds immediately into his checking account at Walls Fergo Bank. Then Walls Fergo Bank lends out all of ilts new excess reserves to Charles, who writes a check to Ana, who deposits the money into her account at PjMorton Bank. PJMorton lends out all of its new excess reserves to Dins 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 doflar: Assume this process continues, with each successive laan deposited into a checking account and no banks keeping aryy excess reserves. Under these assumptions, the $1,800,000 injection into the money supply results in an overall increase of in demand deposits

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