(Solved): Suppose Southeast Mutual Bank, Walls Fergo Bank, and PJMorton Bank all have zero excess reserves. T ...

Suppose Southeast Mutual Bank, Walls Fergo Bank, and PJMorton Bank all have zero excess reserves. The required reserve ratio is presently set at 20\%. Yakov, a \( 50 u t h e a s t \) Mutual Bank customer, deposits 5750,000 into his checking account at the local branch. Complete the following table to reflect any changes in Southeast Mutual Bank's T-account (oefore the bank 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 2096. 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 Rayiv Rajiv deposits the funds immediately, into his checking account at Walls Fergo Bank. Then Walis Fergo Bank lends aut all of its new excess reserves to Charfes, who writes a check to Ana, who deposits the money into her account at P3Morton Bank. PyMortan lends out all of its new exceas reserves to Dirta in turn. Fw us the following table to show the effect of this ongoing chain of events at wach bank, Enter each aoawer fo the aneareit dollar: