suppose the fed sells $25,000 in bonds to luna corporation. luna pays for the bonds with a check drawn on fifth third bank, which the fed deposits. which of the following happen when fifth third bank pays the check? select the correct answer below:
A. fifth third bank's reserves in the fed are increased by $25,000 and the reserves in the entire banking system are increased by $25,000. B. fifth third bank's reserves in the fed are increased by $25,000 and the reserves in the entire banking system are decreased by $25,000. C. fifth third bank's reserves in the fed are decreased by $25,000 and the reserves in the entire banking system are increased by $25,000. D. fifth third bank's reserves in the fed are decreased by $25,000 and the reserves in the entire banking system are decreased by $25,000.