Attempts Keep the Highest / 4 4 . The money creation process Suppose Southeast Mutual Bank, Walls Fergo Bank, and PJMorton Bank all have zero excess reserves. The required reserve ratio is presently set at 25%. Manuel, a Southeast Mutual Bank customer, deposits $1,800,000 into his checking account at the local branch. Complete the following table to reflect any changes in Southeast Mutual 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. Amount Deposited Change in Excess Reserves Change in Required Reserves ( Dollars) (Dollars) ( Dollars) 1,800,000 Now, suppose Southeast Mutual Bank loans out all of its new excess reserves to Kate, who immediately uses the funds to write a check to Hubert. ads immediately into his checking account at Walls Fer