Suppose the Federal Reserve Increases Bank Reserves and Banks Lend

Multiple Choice

Suppose the Federal Reserve increases bank reserves and banks lend out some of these reserves,but at some point banks still have $5 million more they wish to lend out.If the reserve requirement is 10 percent,how much more money can banks create if they lend out the remaining amount?

A) $55 million
B) $50 million
C) $45 million
D) $40 million