$4$

Note: Please show the full calculation work clearly step by step to get the full marks. Calculate the values up to two decimal points. Write your response with a complete sentence in the space provided; no attachments or email will be considered for marking.

Consider a hew deposit to the Canasian bunking systen of $$2,000.$ suppose all commercal hanke have a target resenve ration of $7$ percent The following table shows how deposits reservex, and lowns change as the new deposit permits the barks to "cleate' money.

$\backslash$table$[[$Round$,$ beposits,A iveserves,A touns$],[$first$,$$$7,000,00,$$$490\mathrm{.}00,$$$5\mathrm{.}510\mathrm{.}00],[$Seccond$,,,],[$Third$,,,],[$Fourth$,,,],[$Fith$,,,]]$

Complete fre entire tietic $(6$ points$)$

Kou have now completed the first five rounds of the deposit$-$creation process. What is the total change in deposits so for as a result of the single new degost of $$7,000?(1$ point$)$

This deposit$-$creation process could $90$ on forever, but it would still hare a firate sum. What is the eventual rotal change in beposits in this case' $(1$ point$)$

What is the eventual total change in reserves? $(1$ point$)$

What is the evertuar clange in loans? $(1$ point$)$