Suppose That the Fed Undertakes an Open Market Purchase of $15

Multiple Choice

Suppose that the Fed undertakes an open market purchase of $15 million worth of securities from a bank.If the required reserve ratio is 12%,what is the resulting change in checkable deposits (or the money supply) ,assuming that there are no cash leakages and that banks hold zero excess reserves?

A) $180 million
B) $12.5 million
C) $18 million
D) $125 million