The central bank requires southern to hold 10% of deposits as reserves. southern bank's policy prohibits it from holding excess reserves. if the central bank sells $25 million in bonds to southern bank which of the following will result?
a. the money supply in the economy decreases
b. southern's net worth increases by $25 million
c. decrease in southern's bond assets by $25 million
d. increase in southern's loan assets of $25 million
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