Table 29-4 the Following Information Pertains to the Bank of Edmonton

Multiple Choice

Table 29-4 The following information pertains to the Bank of Edmonton.

-Refer to Table 29-4. Assume that all other banks hold only the required 5 percent of deposits as reserves and people hold only deposits and no currency. If the Bank of Edmonton decides to hold exactly 5 percent reserves, by how much would the economy's money supply increase?

A) $500
B) $1000
C) $1500
D) $2000