A Bank Has Excess Reserves of $1,000,000 and Makes a New

A bank has excess reserves of $1,000,000 and makes a new loan for $500,000.If the bank faces a 10% required reserve ratio,by how much will the money supply increase when the loan is made?

A) There will be no change to the money supply.
B) $50,000
C) $5,000,000
D) $1,500,000
E) $2,000,000