Complete the following cells to reflect the creation of deposits of the above banks (A, B and C) plus other banks, namely Bank D and Bank E

Complete the following cells to reflect the creation of deposits of the above banks (A, B and C) plus other banks, namely Bank D and Bank E. Round the figures to three decimals. Reserve Requirement Ratio is 5%. (5 marks) Increase in Deposit (5) Increase in Loans (8) Increase in Reserves (5) Bank First National 0.00 200.00 m 0.00 A 200.00 m 190.00 m 10.00 m B C D E Total for all banks b. Assume that $800 million is deposited at Bank A, and that this bank and all other banks hold no excess reserves. Bank A's T-account is as follows: Assets Liabilities Checkable Deposits $800 million Reserves $800 million If the required reserve ratio is 6%. Bank A will have excess reserves. Because it does not want to hold excess reserves, it will make loan for $152 million Bank A's T-account will be updated as: Assets Liabilities Reserves Loans $48 million $152 million Checkable Deposits $200 million Similar to Bank A create the T-accounts of Bank B and Bank C when the money spent by the borrowers to whom Bank Alent the $152 million is deposited in Bank B and from Bank Bis subsequently deposited in Bank C. (5 marks)