In Macroland There Is $10,000,000 in Currency

Multiple Choice

In Macroland there is $10,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 10 percent, deposits in Macroland equal ________ and the money supply equals ________.

A) $50,000,000; $60,000,000
B) $55,000,000; $55,000,000
C) $50,000,000; $55,000,000
D) $100,000,000; $100,000,000