A. Actual reserves increase by $10 million, required reserves increase $2.5 million, and excess reserves increase by $7.5 million.
B. Actual reserves decrease by $10 million, required reserves decrease $2.5 million, and excess reserves decrease by $7.5 million.
C. Actual reserves decrease by $10 million, required reserves decrease by $10 million, and excess reserves are unchanged.
D. Actual reserves increase by $10 million, required reserves are unchanged, and excess reserves increase by $10 million.
B. Actual reserves decrease by $10 million, required reserves decrease $2.5 million, and excess reserves decrease by $7.5 million.
C. Actual reserves decrease by $10 million, required reserves decrease by $10 million, and excess reserves are unchanged.
D. Actual reserves increase by $10 million, required reserves are unchanged, and excess reserves increase by $10 million.
ANSWER:
D. Actual reserves increase by $10 million, required reserves are unchanged, and excess reserves increase by $10 million.