Suppose first main street bank, second republic bank, and third fidelity bank all have zero excess reserves. the required reserve ratio is10%. the federal reserve buys a government bond worth $500,000 from Carlos, a client of First Main Street Bank. He deposits the money in his checking account at first main street bank

On the assets side of first pain street bank's T-accounts (before bank makes any new loans) this (a. increases, b. decreases) First Main street Bank's (loans, demand deposits, reserves, net worth, building and furniture) by (500,000,, 450,000,,1.000.000,, 50,000). On the liabilities side first main street bank's T-account, this (increases, decreases) first main street bank's (net worth, loans, reserves, demand deposits, building and furniture) by (500,000,, 450,000,, 1,000,000,, 50,000)

Because the required reserve ratio is 10%, the $500,000 deposit (increase, decreases) first main street bank's excess reserved by ($0,, 450,000,, 400,000,, 250,000) and (increases, decreases) first main street bank's required reserves by (500,000,, 450,000,, 1,000,000,, 50,000)