Assume that the reserve requirement is 10% and no excess reserves are held. If an initial cash deposit of $10,000 is made, the money supply has the potential to increase by:
A) $11,000.
B) $100,000.
C) $90,000.
D) $110,000.

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The Answer of Assume that the reserve requirement is 10% and no excess reserves are held. If an initial cash deposit of $10,000 is made, the money supply has the potential to increase by:
A) $11,000.
B) $100,000.
C) $90,000.
D) $110,000.

Assume That the Reserve Requirement Is 10% and No Excess