First National Bank of Elderidge borrowed $550,000 from the Federal Reserve Bank of St. Louis last Friday. The bank received short-term adjustment credit for 3 days and plans to repay its loan at the close of business Monday. Show the proper accounting (T-account) entries for this transaction when the loan was taken out on Friday and when it is repaid Monday afternoon. How much did total bank reserves rise when this loan was made? Are reserve requirements a factor here?

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The Answer of First National Bank of Elderidge borrowed $550,000 from the Federal Reserve Bank of St. Louis last Friday. The bank received short-term adjustment credit for 3 days and plans to repay its loan at the close of business Monday. Show the proper accounting (T-account) entries for this transaction when the loan was taken out on Friday and when it is repaid Monday afternoon. How much did total bank reserves rise when this loan was made? Are reserve requirements a factor here?

First National Bank of Elderidge Borrowed $550,000 from the Federal