Table 13.1

Balance Sheet
Assets	Liabilities
Vault Cash	$1,150	Checking Accounts	$11,300
Reserve Deposits	$1,650	Savings Accounts	$3,200
Loans	$11,700
Total Assets	$14,500	Total Liabilities	$14,500
Assume that this is the balance sheet of the only bank in this economy and that the money supply is entirely kept by the bank in either a checking or a savings account.

Refer to Table 13.1. Given a reserve requirement of 8percent, what is the increase in required reserves when the government purchases $400 worth of government securities?

Group of answer choices

$400

$224

$32

$256

$5,000