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What happens when the federal reserve buys

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Reference no: EM13903114

Fill in the table below to show what happens when the Federal Reserve buys $200,000 in securities when the reserve rate is 5%.  Use appropriate labels and then explain each step below your entries.  Assume that all excess reserves are loaned out. NEED ASAP PLEASE! 

Federal Reserve Bank                                                   Bank ONE                                                                   Bank TWO

Assets        |   Liabilities                                      Assets       |    Liabilities                                             Assets      |    Liabilities

 

Reference no: EM13903114

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