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1. ( 10.0) Assuming a 10% reserve requirement. If Bank A sells a $100 security to the Fed, which one of the statements is true?
1. ( 10.0) Assuming a 10% reserve requirement. If Bank A sells a $100 security to the Fed, which one of the statements is true? Why the statement is true? (Note: only one statement is true, the wrong statements are not required to be explained.) A) Aggregate reserve in the banking system increase by $100, but the change of monetary supply is uncertain. B) Monetary base has no change if all banks hold no excess reserve. C) Money supply will decrease by $1000 according to multiplication effect. D) Monetary base decreases while money supply increases if Bank A does not lend. beta B I U A. =
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