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 10 percent. If you deposit $9,000 into First Jayhawk Bank,

A) First Jayhawk's required reserves increase by $900.
B) First Jayhawk will be able to lend out $8,100.
C) First Jayhawk's assets and liabilities both will increase by $9,000.
D) All of the above are correct.