If a bank that desires to hold no excess reserves and has just enough reserves to meet the required reserve ratio of 10 percent receives a deposit of $400 it has a
A.
$400 increase in excess reserves and no increase in required reserves
B.
$400 increase in required reserves and no increase in excess reserves
C.
$360 increase in excess reserves and a $40 increase in required reserves.
D.
$40 increase in excess reserves and a $360 increase in required reserves.