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Suppose the Fed make an open market purchase ($50 million) and First National Bank uses all proceeds from the Fed to make more loans. Draw
Suppose the Fed make an open market purchase ($50 million) and First National Bank uses all proceeds from the Fed to make more loans. Draw T-account changes to First National Bank's balance sheet in three stages i.e. 1st the purchase, 2nd the loan, 3rd after the proceeds from the loan are spent by the borrower.
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