Illustrated diagram titled “Who Are the Parties to the Transaction?” showing a four-party financial transaction flow involving a U.S. borrower, a local bank, the Federal Reserve, and the U.S. Treasury. The borrower is shown originating and signing a note associated with a residential property. The local bank is depicted as an intermediary handling the transaction rather than as the originating source of funds. The diagram shows the note moving through the Federal Reserve discount window, with arrows indicating the deposit of the note and the advancement of Federal Reserve notes. The U.S. Treasury is shown issuing obligations and receiving notes through the Federal Reserve system, identified as the ultimate source of funds in the illustrated flow. Labels describe the roles of each party and the movement of the note through origination and deposit stages.
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