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,and the loan made by bank C ends up in Bank D.What dollar value goes in blanks (E) and (F) ,respectively?.

A) $729; $81
B) $81; $729
C) $10; $800
D) $700; $110