Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 5%. The Federal Reserve buys a government bond worth $200,000 from Kenji, a client of First Main Street Bank. He deposits the money into his checking account at First Main Street Bank.

Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 5%.

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)
200,000