Which of the Following Is Correct? When There Is a Reserve

Multiple Choice

Which of the following is correct? When there is a reserve requirement,banks

A) must hold exactly the required quantity of reserves.
B) may hold more than,but not less than,the required quantity of reserves.
C) may hold less than,but not more than,the required quantity of reserves.
D) must seek the Fed's permission whenever they wish to expand or contract their loans to customers.