All else the same, when the Fed calls in a $100 discount loan previously extended to the First National Bank, reserves in the banking system

All else the same, when the Fed calls in a $100 discount loan previously extended to the First National Bank, reserves in the banking system




A) increase by $100.
B) increase by more than $100.
C) decrease by $100.
D) decrease by more than $100.



Answer: C