Suppose Rainbow Bank lends $1000 to Ari, a small business owner. Ari uses the money to purchase $1000 in equipment from Ariel, who deposits the profits in their own bank, Goldenrod Bank. Which is the most reasonable prediction of what happens next in the money creation process?
A. Goldenrod Bank keeps the money in their vaults and doesn't lend out any of it Ariel will later withdraw the money and keep it in their store
B. Goldenrod Bank earns interest from the central bank for keeping the money in reserves
c. Goldenrod Bank lends out 700 of Ariel's deposit to another client who needs money to repair their home
D. None of the above