Suppose Banks Desire to Hold No Excess Reserves and That

Multiple Choice

Suppose banks desire to hold no excess reserves and that the Fed has set a reserve requirement of 6 percent.If you deposit $8,000 into First Raven Bank,

A) First Raven's required reserves increase by $480.
B) First Raven will be able to lend out $7,520.
C) First Raven's assets and liabilities both will increase by $8,000.
D) All of the above are correct.