Assume that the required reserve ratio is 20 percent and that the Fed engages in an open market purchase of $1,000 of government securities. The central bank buys $1,000 of government securities only from commercial banks. The maximum change in excess reserves, banking system loans, and the total money supply will be Excess Reserves Banking System Loans Total Money Supply Multiple choice question. A) $ 1,000 $ 5,000 $ 5,000 B) $ 1,000 $ -4,000 $ -5,000 C) $ 200 $ 800 $ 1,000 D) $ 0 $ -5,000 $ -1,000 E) $800 $ 4,000 $ 5,000