If Bulge Bank Has a Desired Reserve Ratio of 10

Multiple Choice

If Bulge Bank has a desired reserve ratio of 10 percent, loans of $25,000, deposits of $100,000, vault cash of $10,000, and reserves at the Fed of $65,000, then the bank

A) has excess reserves of $55,000.
B) has no remaining capacity to make loans.
C) does not have enough reserves to meet its requirement.
D) has excess reserves of $75,000.
E) has excess reserves of $65,000.