# A bank has excess reserves of $1,000 and demand deposit liabilities of$80,000 when the reserve requirement is 20 percent.

A bank has excess reserves of $1,000 and demand deposit liabilities of$80,000 when the reserve requirement is 20 percent. If the reserve requirement is lowered to 10 percent, the bank’s excess reserves will be

A) $1,000. B)$8,000.
C) $9,000. D)$17,000.