If the federal reserve decreases the reserve rate from 5% to 2%, how does this affect the amount of money that would result because of fractional reserve banking from an initial deposit into a bank of $25,000?
a. it increases the amount by $500,000.
b. it decreases the amount by $750,000.
c. it increases the amount by $750,000.
d. it decreases the amount by $500,000.