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 Sarah Smith a $5,000 student loan, which her 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 A and Bank B together to make:

A) $5,000 in new loans.
B) $6,000 in new loans.
C) $9,000 in new loans.
D) $10,000 in new loans.