A Bank Has Deposits of $100,000,reserves of $20,000,and Loans of $80,000.If

Multiple Choice

A bank has deposits of $100,000,reserves of $20,000,and loans of $80,000.If the desired reserve ratio is 10 percent,then its excess reserves are

A) 0.
B) $8,000.
C) $10,000.
D) $2,000.
E) $12,000.