Assume the Reserve Requirement Is 25 Percent,demand Deposits Are $500

Assume the reserve requirement is 25 percent,demand deposits are $500 million,and total reserves are $32 million.If the reserve requirement is decreased to 20 percent,the banking system will experience

A) Excess reserves equal to $32 million.
B) Excess reserves equal to $68 million.
C) No change in the lending capacity.
D) A deficiency of required reserves equal to $68 million.