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.The loan made by Bank B ends up in Bank C.What dollar value goes in blanks (C) and (D) ,respectively?.

A) $900; $810
B) $90; $810
C) $110; $700
D) $700; $110