At one time, the country of Freedonia had no banks, but had currency of $40 million. Then a banking system was established with a reserve requirement of one-third. The people of Freedonia now keep half their money in the form of currency and half in the form of bank deposits. If banks do not hold excess reserves, the money supply after the first round of deposit is closest to:

a.

$13.33 million

b.

$20 million

c.

$33.34 million

d.

$36.36 million