Complete the following table to show the effects of the new deposit on excess and required reserves, assuming a required reserve ratio of 20%. Hint: If the change is negative, be sure to enter the value as a negative number. Amount Deposited Change in Excess Reserves Change in Required Reserves (Dollars) (Dollars) (Dollars) 1,500,000 Now, suppose First Main Street Bank loans out all of its new excess reserves to Rosa, who immediately writes a check for the full amount to Nick. Nick then immediately deposits the funds in his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Brian, who writes a check to Alyssa, who deposits the money in her account at Third Fidelity Bank. Finally, Third Fidelity lends out all of its new excess reserves to Crystal. 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 Checkable Deposits Increase in Required Reserves Increase in Loans (Dollars) (Dollars) (Dollars) First Main Street Bank Second Republic Bank Third Fidelity Bank

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Aplia Homework: Banking and the Money Supply
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Complete the following table to show the effects of the new deposit on excess and reguired reserves, assuming a required reserve ratio of 20%.
Hint: If the change is negative, be sure to enter the value as a negative number.
Amount Deposited
Change in Excess Reserves
Change in Required Reserves
(Dollars)
(Dollars)
(Dollars)
1,500,000
Now, suppose First Main Street Bank loans out all of its new excess reserves to Rosa, who immediately writes a check for the full amount to Nick. Nick
then immediately deposits the funds in his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess
reserves to
an, who writes a check
who deposit
money in her account at Third Fidelity Bank. Finally, Third Fidelity lends out all of its
new excess reserves to Crystal.
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 Checkable Deposits
Increase in Required Reserves
Increase in Loans
(Dollars)
(Dollars)
(Dollars)
First Main Street Bank
Second Republic Bank
Third Fidelity Bank
1:
rch
Transcribed Image Text:ne-Microsof Central Pipeline * MindTap - Cengage Learning Content https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=58326424525984828412294502&elSBN=97813379156018id=12764437678snaps.. CENGAGE MINDTAP Q Search this cours Aplia Homework: Banking and the Money Supply ols Complete the following table to show the effects of the new deposit on excess and reguired reserves, assuming a required reserve ratio of 20%. Hint: If the change is negative, be sure to enter the value as a negative number. Amount Deposited Change in Excess Reserves Change in Required Reserves (Dollars) (Dollars) (Dollars) 1,500,000 Now, suppose First Main Street Bank loans out all of its new excess reserves to Rosa, who immediately writes a check for the full amount to Nick. Nick then immediately deposits the funds in his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to an, who writes a check who deposit money in her account at Third Fidelity Bank. Finally, Third Fidelity lends out all of its new excess reserves to Crystal. 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 Checkable Deposits Increase in Required Reserves Increase in Loans (Dollars) (Dollars) (Dollars) First Main Street Bank Second Republic Bank Third Fidelity Bank 1: rch
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