Suppose You Found $10,000 Hidden Under a Rock and Deposited

question 228

Multiple Choice

Suppose you found $10,000 hidden under a rock and deposited it in a demand deposit account at your bank. If the reserve requirement was 10 percent, your deposit would initially add ____ to total demand deposits and over time increase the money supply by a maximum of ____.

• A)​$10,000; $100,000
• B)​$10,000; $90,000
• C)​$1,000; $90,000
• D)​$1,000; $9,000