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Suppose Southeast Mutual Bank, Walls Fergo Bank, and PJMorton Bank all have zero excess reserves. The required reserve ratio is presently set at 25%. Edison,

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Suppose Southeast Mutual Bank, Walls Fergo Bank, and PJMorton Bank all have zero excess reserves. The required reserve ratio is presently set at 25%. Edison, a Southeast Mutual Bank customer, deposits $1,800,000 into his checking account at the local branch. Coirgicte the folbwing table to ahew the eflect of a sew desedt on excess and mstired remerves when the reoured resere rabio a 25 . Mint: If the charge is negative, be ture so enter the value as negative number. Brian deoosits be funds immediately into his cheding account at Wals fergo Bank. Then Wols fergo tank lends cot all of its cew excest reserver to Maria in turn. Fil in the following tuble to ahow the effect of thir ongoing chain of events at wach bunk. Enter enoh annier to the neareat doltar. Assume this procesi centinuel, wath eadb succhsive loan deossithd into a dhaching account and to banka kaebing any excess reserves. Under these ausowebions, the 31,900,000 injecton into the money supply rewilts in an overal increase of in demand deconits

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