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

question 57

Multiple Choice

Table 10-4
The following information pertains to the Bank of Moncton.
-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 Moncton decides to hold reserves of 4 percent,by how much would the economy's money supply increase?

• A) $30,000
• B) $35,000
• C) $42,000
• D) $45,000

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