Consider a New Deposit of $10 000 to the Canadian

Consider a new deposit of $10 000 to the Canadian banking system. Assuming that all Canadian banks have a target reserve ratio of 2 percent, and that there is no cash drain, the banking system as a whole could create as a result of this single new deposit.

A) $10 000 of new deposits
B) $50 000 of new deposits
C) $500 000 of new deposits
D) $980 000 of additional loans
E) $1 000 000 of additional loans