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please answer all parts Suppose banks keep no excoss reserves and that al banks are currently meeting the reserve requirement. The Federal Reserve ther makes
please answer all parts
Suppose banks keep no excoss reserves and that al banks are currently meeting the reserve requirement. The Federal Reserve ther makes an open market purchase of $12.000 from Bank 1. Use the T-account below to show the result of this transaction for Bank 1, assuming Bank 1 keeps no excoss resorves after the transaction. (Remember T-aceounts show the changez to a Bank's balance sheet) Assume oll of Bank 1's loans of $12,000 are spent by the borrowers and then deposited into Bank 2. Use the T-acoount below to show the result of this trantaction for Bank 2, assuming Bark 2 keeps no excoss reserves and the reserve requirement is 13K. (Remember T-aceounts show the changes to a bank's balance sheot) Assume ofl of Bank 2 s loans of $10,440 ase spent by the borrowers and then deposited into 0 ank 3 . chacoves to a benkt balance aheet) Step by Step Solution
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