Federal Reserve Bank Ledger Assets Liabilities Cash (Reserves) 50 M Deposits 100 M U.S. Govt Bonds 50 M Total Assets 100 M Total Liabilities 100 M Bank 2 Bank Ledger Assets Liabilities Cash (Reserves) 20 M Deposits 25 M U.S. Govt Bonds 5 M Total Assets 25 M Total Liabilities 25 M The ledgers for the Federal Reserve and Bank 2 are given above. There are no capital requirements and Bank 2 faces a reserve requirement of 20%. The Federal Reserve decreases the money supply by selling 5 M worth of bonds to Bank 2. How much does bank 2 change their lending by as a result of the Federal Reserve's transaction? an increase of 5,000,000 a decrease of 5,000,000 an increase of 15,000,000 a decrease of 15,000,000 Federal Reserve Bank Ledger Assets Liabilities Cash (Reserves) 50 M Deposits 100 M U.S. Govt Bonds 50 M Total Assets 100 M Total Liabilities 100 M Bank 2 Bank Ledger Assets Liabilities Cash (Reserves) 20 M Deposits 25 M U.S. Govt Bonds 5 M Total Assets 25 M Total Liabilities 25 M The ledgers for the Federal Reserve and Bank 2 are given above. There are no capital requirements and Bank 2 faces a reserve requirement of 20%. The Federal Reserve decreases the money supply by selling 5 M worth of bonds to Bank 2. Which of the following is true of the Federal Reserve's ledger after the transaction? Cash increases by 5 million and US government bonds decreases by 5 million Cash increases by 5 million and US government bonds increases by 5 million. Cash decreases by 5 million and US government bonds increases by 5 million. Cash decreases by 5 million and US government bonds decreases by 5 million