Table 122 -Refer to Table 12

Table 12.2
$\begin{array}{c}\text { Balance Sheet }\\\quad\quad\quad\text { Assets } \quad\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }\\\begin{array}{|c|c|c|c|}\hline\text { Cash } & \$ 5,000 & \begin{array}{c}\text { Demand } \\\text { Deposits }\end{array} & \$ 20,000 \\\hline \text { Loans } & 15,000 & & \\\hline \text { Total Assets } & \$ 20,000 & \text { Total Liabilities } & \$ 20,000 \\\hline\end{array}\end{array}$


-Refer to Table 12.2. If the reserve requirement is 12 percent and the bank receives a new deposit of $10,000, then required reserves will increase by _____.

A) $3,600
B) $2,400
C) $2,600
D) $2,800
E) $1,200