After Getting an Additional $5,000 in Excess Reserves, Bank a Gives

Multiple Choice

After getting an additional $5,000 in excess reserves, Bank A gives John Jones a $5,000 student loan, which his school deposits in Bank B. If the reserve requirement is 20 percent, this $5,000 increase in Bank A's excess reserves will allow Bank B to make:

A) no new loans.
B) $1,000 in new loans.
C) $3,200 in new loans.
D) $4,000 in new loans.