Table 10-4 The Following Information Pertains to the Bank of Kingston

question 11

Multiple Choice

Table 10-4
The following information pertains to the Bank of Kingston.

-Refer to the Table 10-4.Assume that all other banks hold only the required 4 percent of deposits as reserves,and that people hold only deposits and no currency.If the Bank of Kingston decides to hold reserves of 4 percent,by how much would the economy's money supply increase?

• A)$50 200
• B)$60 000
• C)$62 000
• D)$65 400