Refer to Exhibit 13-1

Multiple Choice

Refer to Exhibit 13-1.Suppose that the Federal Reserve conducts open market operations by purchasing $1,000 worth of government securities from Bank A.As a result,Bank A finds itself with $1,000 in excess reserves that it lends out and those funds end up in Bank B.What dollar value goes in blanks (A) and (B) ,respectively?.

A) $100; $90
B) $10; $90
C) $10; $990
D) $100; $900