Exhibit 15-4 Balance Sheet of Tucker National Bank

Exhibit 15-4 Balance sheet of Tucker National Bank

Assume all banks in the system started with the balance sheet shown in Exhibit 15-4 and the Fed makes a $1,000 open market purchase. The result would be a(n) :

A) infinite contraction of the money supply.
B) infinite expansion of the money supply.
C) $1,000 expansion of the money supply.
D) $5,000 expansion of the money supply.