If a Bank's Desired Reserve-Deposit Ratio Is 33% and It

Multiple Choice

If a bank's desired reserve-deposit ratio is 33% and it has deposit liabilities of $100 million and reserves of $50 million,it

A) has too few reserves and will reduce its lending.
B) has excess reserves and will increase its lending.
C) has the correct amount of reserves and outstanding loans.
D) should increase the amount of its reserves.
E) should decrease the amount of its reserves.