Suppose the Fed's Required Reserve Ratio (REQ) Is 10

True/False

Suppose the Fed's required reserve ratio (REQ) is 10%. Further suppose that the Fed buys $25 million of U.S. Treasury securities from a dealer who deposits the check, which is drawn on the Fed, in her bank increasing her bank's reserve account (∆R) with the Fed by $25 million as well as its demand deposits, its total reserves, and the overall level of M₁. The total demand deposits created (∆TDD) are $25 million.