Question 2? (2 points} In a fractional reserve banking system with no excess reserves and no currency holdings, suppose the central bank buys $10!] million of bonds. Which statement best describes the e'ects of this openmarket operation? 0 Both reserves and the money supply increase by more than $1 DD million. 0 Reserves increase by $1 00 million, and the money supply increases by $10!] million. 0 Reserves and the money supply increase by less than $100 million. 0 Reserves increase by $1 00 million, and the money supply increases by more than $100 million. Question 28 (2 points} Suppose the reserve ratio is 20 percent and banks do not hold excess reserves. Suppose the Bank of Canada sells $l million of bonds to the public. Which statement best describes the eets of this openmarket operation? 0 Bank reserves increase by $1 million, and the money supply eventually increases by $10 million. 0 Bank reserves increase by $113 million, and the money supply eventually increases by $30 million. 0 Bank reserves decrease by $1 million, and the money supply eventually increases by $l million. 0 Bank reserves decrease by $ 1:] million, and the money supply eventually decreases by $30 million