When an Individual Deposits Currency into a Chequing Account

Multiple Choice

When an individual deposits currency into a chequing account,

A) bank reserves increase,which increases the amount banks can lend,thereby increasing the money supply.
B) bank reserves decrease,which reduces the amount banks can lend,thereby reducing the money supply.
C) bank reserves are unchanged.
D) bank reserves decrease,which increases the amount banks can lend,thereby increasing the money supply.
E) bank reserves increase,which reduces the amount banks can lend,thereby reducing the money supply.