Assume the First Bank of Townsville Makes a Loan of $2,500

Assume the First Bank of Townsville makes a loan of $2,500. This loan will

A) increase the First Bank of Townville's liabilities at the Reserve Bank.
B) increase the First Bank of Townville's reserves.
C) decrease the quantity of money initially by $2,500.
D) have no change on the quantity of money, just its composition.
E) increase the quantity of money initially by $2,500.