Refer to Exhibit 13-1

question 179

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.As a result,Bank A finds itself with $1,000 in excess reserves that it lends out and those funds end up in Bank B.What dollar value goes in blanks (A) and (B) ,respectively?.

• A) $100; $90
• B) $10; $90
• C) $10; $990
• D) $100; $900

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