Suppose That the Reserve Requirement Is 10 Percent and Bob

Multiple Choice

Suppose that the reserve requirement is 10 percent and Bob writes a check to you for $100. If you deposit the check to your checking account, then:

A) the money supply will not change.
B) the money supply can increase by as much as $1000.
C) the money supply will decrease by exactly $100.
D) the money supply can decrease by as much as $1000.