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Suppose that the public holds 50% of the money supply in currency and the reserve requirement is 20 percent. Banks hold no excess reserves. A

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Suppose that the public holds 50% of the money supply in currency and the reserve requirement is 20 percent. Banks hold no excess reserves. A customer deposits $6,000 in her checkable deposit. Reference: Ref 298 (Scenario: Holding Cash) As a result of the deposit, required reserves will increase by: O A. $0 0 B. $1,200 0 C. $3,000 0 D. $6,000

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