answer and explain

5. The money creation process Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 25%. Manuel, a dient of First Main Street Bank, deposits $1,800,000 into his checking account at First Main Street Bank. allowing table to reflect any pes in First Main Street Bank's T-account (before the bank makes any new loans). Assets Liabilities Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 25%%. Hint: If the change is negative, be sure to enter the value as negative number. at Deposited Change in Excess Reserves Change in Required Reserves (Dollars) (Dollars) (Dollars) 1,800,000 Now, suppose First Main Street Bank loans out all of its new excess reserves to Kate, who immediately uses the funds to write a check to Hubert. Hubert deposits the funds immediately into his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Shen, who writes a check to Poormima, who deposits the money into her account at Third Fidelity Bank. Third Fidelity lends out all of its new excess reserves to Valerie in turn. Full in the following table to show the effect of the ongoing chain of events at each bank. Enter each answer to the nearest dollar, Increase in Deposits Increase in Required Reserves Increase in Loans (Dollars) (Dollars) (Dollars) First Main Street Bank Second Republic Bank Third Fidelity Bank cume this process continues, with each successive loan deposited into a decking account and no banks keeping any excess reserves, Under these sumptions, the $1,800,009 infection into the money supply results in an overall increase of in demand deposits