Please answer everything in the photos. Bottom question is asking which option below is the overall increase. $750,000 $6,000,000 or $7,500,000. Suppose Southeast Mutual Bank, Walls Fergo Bank, and PJMorton Bank all have zero excess reserves. The required reserve ratio is presently set at20%. Raphael, a Southeast Mutual Bank customer, deposits $1,500,000 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).AssetsLiabilitiesComplete the following table to show the effect of a new deposit on excess and required reservesHint: If the change is negative, be sure to enter the value as negative number.Amount Deposited Change in Excess Reserves(Dollars)(Dollars)1,500,000Change in Required Reserves(Dollars)Southeast Mutual BankWalls Fergo BankPJMorton Bank$300,000$1,200,000Increase in Deposits Increase in Required Reserves(Dollars)(Dollars)$1,500,000$3,600,000Now, suppose Southeast Mutual Bank loans out all of its new excess reserves to Megan, who immediately uses the funds to write a check to Larry.Larry deposits the funds immediately into his checking account at Walls Fergo Bank. Then Walls Fergo Bank lends out all of its new excess reserves toAlex, who writes a check to Susan, who deposits the money into her account at PJMorton Bank. PJMorton lends out all of its new excess reserves toBecky in turn.uired reserve ratio is 20%.Fill in the following table to show the effect of this ongoing chain of events at each bank. Enter each answer to the nearest dollar.Increase in Loans(Dollars)Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under theseassumptions, the $1,500,000 injection into the money supply results in an overall increase ofin demand deposits.+ Suppose Southeast Mutual Bank, Walls Fergo Bank, and PJMorton Bank all have zero excess reserves. The required reserve ratio is presently set at20%. Raphael, a Southeast Mutual Bank customer, deposits $1,500,000 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).CoHiBuilding and furnitureDepositsLoansNet worthReserves(Dollars)1,500,000AssetsLiabilities+le to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 20%.tive, be sure to enter the value as negative number.hange in Excess Reserves(Dollars)Change in Required Reserves(Dollars)Now, suppose Southeast Mutual Bank loans out all of its new excess reserves to Megan, who immediately uses the funds to write a check to Larry.Walls Fergo Bank. Then Walls Fergo Bank lends out all of its new excess reserves toLarry deposits the funds immediately into his checking accountAlex, who writes a check to Susan, who deposits the money into her account at PJMorton Bank. PJMorton lends out all of its new excess reserves toBecky in turn.Southeast Mutual BankWalls Fergo BankPJMorton BankFill in the following table to show the effect of this ongoing chain of events at each bank. Enter each answer to the nearest dollar.Increase in Deposits Increase in Required Reserves(Dollars)(Dollars)Increase in Loans(Dollars)Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under theseassumptions, the $1,500,000 injection into the money supply results in an overall increase ofin demand deposits.

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The reserve ratio, commonly known as the reserve requirement, is the proportion of deposits that…