If a Bank with a Required Reserve Ratio of 15

Multiple Choice

If a bank with a required reserve ratio of 15 percent receives a deposit of $600, it now has a

A) $600 increase in excess reserves and no increase in required reserves.
B) $600 increase in required reserves and no increase in excess reserves.
C) $510 increase in excess reserves and a $90 increase in required reserves.
D) $90 increase in excess reserves and a $510 increase in required reserves.