Bank a Has an Increase in Deposits of $20 Million

Multiple Choice

Bank A has an increase in deposits of $20 million dollars and all bank reserve requirements are 10 percent. Bank A loans out the full amount of the deposit increase that is allowed. This amount winds up deposited in Bank B. Bank B lends out the full amount possible as well and this amount winds up deposited in Bank C. What is the total increase in deposits resulting from these three banks?

A) $48.00 million
B) $54.20 million
C) $56.33 million
D) $57.10 million
E) $60.00 million