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 because Southern Bank's assets declines by $2.5 million
B. Southern's net worth increases by $25 million
C. decreases in Southern's bond assets by $25 million
D. the money supply in the economy decreases because southern Bank's reserve declines by $25 million