Suppose a First Bank currently has $1 million in reserves and $10 million in deposits. The required reserve ratio is 10%. If customers deposit an additional $100 thousand, First Bank
A) Needs to obtain $10,000 in reserves to meet the reserve requirement
B) Now has excess reserves and can lend up to $90,000 if it wishes
C) Will try to reduce deposits so it meets the required reserve ratio
D) May loan all $100,000 if it wishes.