Table 29-4. Assets Reserves $1,000 Loans 7,000 Liabilities Deposits $8,000 Refer to Table 29-4. The reserve ratio for this bank is O 87.5 percent. O 25 percent. O 8 percent. O 12.5 percent. The reserve ratio is 10 percent, banks do not hold excess reserves, and people hold only deposits and no currency. When the Fed sells $20 million worth of bonds to the public, bank reserves O decrease by $20 million and the money supply eventually decreases by $200 million. O increase by $20 million and the money supply eventually increases by $200 million. O increase by $20 million and the money supply eventually increases by $20 million. O decrease by $2 million and the money supply eventually increases by $20 million