The required reserve ratio is 25% for all banks. Assuming that all the customers that have outstanding loans have used all of those additional funds to invest in new machinery for the businesses (therefore, the amount of checkable deposits is the true liability the bank has to its customers), then $__________ is the resulting change to the loan creating potential of the whole system (these three banks) as a result of Second National Bank customers depositing an additional $400,000 in their Checkable Deposit accounts.

Assets 05 Treasury Bonds Reserves {Cash} Loans Assets US Treasury Bonds Reserves {Cash} Assets US Treasury Bonds Reserves {Cash} Loans First National Bank $450,000 $1 ?5,000 $125,000 Liabilities and Net Worth Net Worth Checkable Deposits Second National Bank $100,000 $250,000 Liabilities and Net Worth Net Worth Checkable Deposits Third National Bank $900,000 $350,000 $250,000 Liabilities and Net Worth Net Worth Checkable Deposits $500,000 $250,000 $250,000 $100,000 $1 ,000, 000 $500,000