his question asks you to work through an open-market sale of $7,000 in securities to Bank 1. The open-market operation then affects Bank 2, Bank 3, etc. There are no leakages into currency, and banks always hold exactly 60% of deposits as reserves. Which of the following will be results of this OMO? A) Bank 3's Reserves will decrease by $1,680 B)  Bank 2s Reserves will decrease by 60% C) Bank 3's Loans will decrease by $1.120 D) Bank 1's Deposits will decrease by $4.200 E) Bank 1's Loans will decrease by $4,200 F) Bank 2's Deposits will decrease by $7.000

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Q: reserves

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A:

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