Consider a new deposit to the Canadian banking system of $10,000. Suppose that all commercial banks...

 

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Consider a new deposit to the Canadian banking system of $10,000. Suppose that all commercial banks have a target reserve ratio (v) of 20 percent and there is no cash drain. a. The first round has been completed in the table below. Now, recalling that the new loans in the first round become the new deposits in the second round, complete the table. (Round your responses to the nearest dollar. If you have rounded a number and need to use it in another calculation, you should use this rounded value. For example, if the new loans in the second round are found to be $1,255.76 and rounded to $1,256, then if at some later point you need to use this value, you should use $1,256, not $1,255.76.) Round A in Deposits First $10,000 AReserves $2,000 ALoans $8,000 Second Third Fourth Consider a new deposit to the Canadian banking system of $10,000. Suppose that all commercial banks have a target reserve ratio (v) of 20 percent and there is no cash drain. a. The first round has been completed in the table below. Now, recalling that the new loans in the first round become the new deposits in the second round, complete the table. (Round your responses to the nearest dollar. If you have rounded a number and need to use it in another calculation, you should use this rounded value. For example, if the new loans in the second round are found to be $1,255.76 and rounded to $1,256, then if at some later point you need to use this value, you should use $1,256, not $1,255.76.) Round A in Deposits First $10,000 AReserves $2,000 ALoans $8,000 Second Third Fourth