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  3. suppose banks keep no excess reserves and that all

Suppose banks keep no excess reserves and that all banks are currenty meeting the reserve...

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Accounting

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Suppose banks keep no excess reserves and that all banks are currenty meeting the reserve requirement. The Foderal Reservo theo makes an open markot purchase of $13.000 from Blank Use the T-acoount below to show the result of this transaction for Bank 1 , assuming Bank 1 keeps no excess reservos after the transoction. (Remomber Taccounts show the changes to a bs balance sheet) Assume al of Bank 1's loans of $13,000 sre spent by the borrowers and then deposied into Bank 2 Use the Tactount below to show the resut of this transaction for Bank 2, assuming Bank 2 keeps no excess feserves and the reserve requirement is 13%. (Renember Taccounts show the changes to a bank's bolance sheet) Assume at of Bark. 2 s loans of $11,310 are spent by the borrowers and then deposited into Bark 3. Use the T-account below to show the resut of this transaction for Bank 3, assuming thank 3 keepe no excess reserves and the roserve requirement is 13%. (Remember Taccounte show the changes to a bank's balance shoet)

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