Exhibit 15-3 Balance Sheet of Tucker National Bank

Exhibit 15-3 Balance sheet of Tucker National Bank

Assume all banks in the system started with balance sheets as shown in Exhibit 15-3 and the Fed made a $100,000 open market purchase. The result would be a(n) :

A) $500,000 expansion of the money supply.
B) $100,000 expansion of the money supply.
C) $20,000 contraction of the money supply.
D) infinite expansion of the money supply.