Suppose that the central banks buys $100 worth of bonds on the open market. Assume that the required reserve ratio is 10

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answerhappygod
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Suppose that the central banks buys $100 worth of bonds on the open market. Assume that the required reserve ratio is 10

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Suppose that the central banks buys $100 worth of bonds on the
open market. Assume that the required reserve ratio is 10%, banks
keep no excess reserves, and there are no cash leakages. After
banks have made all adjustments, reserves, demand deposits, and
loans will increase by which of the following?
Please choose the best answer, explain why you chose that
answer, and justify why all the other choices are wrong.
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