Answer:
A. by $50,000
Explanation:
When the bank purchases the T-bills then its investment increases by the same amount that is by $50,000.
From the bank from which the treasury bill is purchased, their reserves will increase by $50,000. This is because of the nature of Fed, as it is central bank any investment made by the central bank will be a reserve for the bank in which investment is made.
As the amount held by Fed is considered, to be a deposit, even against it Fed holds a security.
