Table 11-2

Multiple Choice

Table 11-2. An economy starts with $10,000 in currency. All of this currency is deposited into a single bank, and the bank then makes loans totaling $9,250. The T-account of the bank is shown below.

-Refer to Table 11-2. If all banks in the economy have the same reserve ratio as this bank, then an increase in reserves of $150 for this bank has the potential to increase deposits for all banks by

A) $866.67.
B) $1,666.67.
C) $2,000.00.
D) an infinite amount.