Refer to Exhibit 13-1

question 32

Multiple Choice

Refer to Exhibit 13-1.Suppose that the Federal Reserve conducts open market operations by purchasing $1,000 worth of government securities from Bank A.At the end of this process of money creation,what is the total amount of new checkable deposits?

• A) $1,000,000
• B) $1,000
• C) $10,000
• D) $100,000