Table 29-5 the Following Information Pertains to the Bank of Kingston

Multiple Choice

Table 29-5 The following information pertains to the Bank of Kingston.

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

A) $50 200
B) $60 000
C) $62 000
D) $65 400