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Recently the FED purchased two million dollars in U.S. Treasury securities from the Huntington National Bank (HNB). What effect will the FED's action have on
Recently the FED purchased two million dollars in U.S. Treasury securities from the Huntington National Bank (HNB). What effect will the FED's action have on the HNB's reserve and money supply? Use a required reserve of ten percent and assume that HNB holds no excess reserves and all currency is deposited into the banking system.
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