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Fill in the table below to show what happens when the

Fill in the table below to show what happens when the Federal Reserve buys $200,000 in securities when the reserve rate is 5%. Use appropriate labels and then explain each step below your entries. Assume that all excess reserves are loaned out. NEED ASAP PLEASE!

Federal Reserve Bank Bank ONE Bank TWO

Assets | Liabilities Assets | Liabilities Assets | Liabilities

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