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The desired reserve ratio is 1 0 % . A bond dealer purchases $ 1 5 0 , 0 0 0 worth of Canadian government

The desired reserve ratio is 10%.
A bond dealer purchases $150,000 worth of Canadian government securities, electronically debiting the dealer's deposit account at Reliable Bank.
Which of the following correctly describes the immediate effect of this transaction on the money supply?
A. The money supply decreases by $150,000
B. The money supply decreases by $135,000
C. The money supply decreases by $1,500,000
D. There is no change in the money supply.
E. None of the above.
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