$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$ -In the Balance Sheet Above, the Entries Are in Millions

Multiple Choice

$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$
$\begin{array}{|lc|lc|}\hline \text { Reserves } & \$ 400 &\text { Deposits }&\$1,200\\\text { Loans }&\$800\\\text { Total } & \$ 1,200&\text { Total }&\$1,200 \\\hline\end{array}$
-In the balance sheet above, the entries are in millions of dollars for the FBN Bank. If the desired reserve ratio on deposits is 10 percent, FBN Bank has desired reserves of

A) $120 million.
B) $700 million.
C) $0.
D) $100 million.