If the reserve-deposit ratio is 25% and the banking system receives an additional $10 million in reserves,bank deposits will increase by
A) $10 million.
B) $250 million.
C) $400 million.
D) $4 million.
E) $40 million.

Question

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The Answer of If the reserve-deposit ratio is 25% and the banking system receives an additional $10 million in reserves,bank deposits will increase by
A) $10 million.
B) $250 million.
C) $400 million.
D) $4 million.
E) $40 million.

If the Reserve-Deposit Ratio Is 25% and the Banking System