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Fill in the table below to show what happens when the Federal Reserve buys $200,000 in...

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.

Federal Reserve Bank                       Bank ONE                         Bank TWO

Assets        |   Liabilities                                      Assets       |    Liabilities                                             Assets      |    Liabilities

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