Suppose you found $10,000 hidden under a rock and deposited it in a demand deposit account at your bank. If the reserve requirement was 20 percent, your deposit would add to total demand deposits; the added loans that the banking system as a whole could make as a result of the deposit would generate in additional demand deposits.
a. $2,000; $4,000
b. $2,000; $40,000
c. $10,000; $40,000
d. $10,000; $50,000