Which of the following correctly summarizes the net effect of the listed bank transactions?
Transactions
- Customers deposit $500 in their checking accounts
- The bank borrows $1000 from the Fed
- The bank sells $500 in bonds to the fed
a) Reserves increase by $1500
b) Reserves increase by $2000
c) Assets increase by $1500
d) Assets increase by $2000
e) b and d
f) b and c