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Suppose banks keep no excess reserves and that at banks are currently meeting the reserve requirement The Federal Reserve then makes an open market purchase

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Suppose banks keep no excess reserves and that at banks are currently meeting the reserve requirement The Federal Reserve then makes an open market purchase of $20,000 from Bank 1 Use the T-account below to show the result of this transaction for Bank 1, assuming Bank 1 keeps no excess reserves after the transaction (Remember T-accounts show changes to a banks balance sheet the

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