Table 29-5 the Following Information Pertains to the Bank of Kingston

question 88

Multiple Choice

Table 29-5 The following information pertains to the Bank of Kingston.

-Refer to Table 29-5. 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