QUESTION #1

Populate the following T-accounts with the following data, please make sure where double entry is required

$100 million in mortgage-backed securities (MBS)

$200 million demand deposits

$20 million in reserves held by banks

$100 million in Treasury securities held by banks

$50 million in Treasury securities held by the Fed

$5 million in overnight borrowing by banks from the Fed

Households Banks Federal Reserve Treasury

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