Given a 25 Percent Reserve Ratio,assume the Commercial Banking System

Given a 25 percent reserve ratio,assume the commercial banking system is loaned up.Now assume the reserve ratio is reduced to 20 percent.As a result of this reduction:

A) we can expect bank lending and bank profits to decline.
B) each dollar of bank reserves will now support a maximum of $5 of checkable deposits.
C) the banking system must now reduce outstanding loans by 5 percent.
D) the banking system can now increase lending by 5 percent.