Suppose that the:

Public holds 0% of the money supply in currency.

Reserve requirement is 20%.

Banks hold no excess reserves.

A customer deposits $6,000 in her checkable deposit. 6. As a result of the deposit, required reserves will increase by:

7. The money multiplier =

8. As a result of the deposit, the bank's loans will increase by:

9. Now suppose that the public holds 50% of the money supply in currency. The money multiplier would be:

A) 2. B) greater than 5. C) 5. D) less than 5.