Within a country, commercial banks are keeping $50 million in cash and have generated $600 million in deposits. The central bank increases the cash deposit ratio to 10%. What would be the result?
- ACommercial banks will decrease deposits to $500 million.
- BCommercial banks will deposit $5 million in the central bank.
- CCommercial banks will deposit $10 million in the central bank.
- DCommercial banks will increase money in circulation by $5 million.