Answer the question on the basis of the following table for a commercial bank or thrift:
Refer to the table. If the legal reserve ratio falls from 25 percent to 10 percent, excess reserves of this single bank will:
A. Fall by $6,000 and the monetary multiplier will decline from 30 to 10.
B. Rise by $60,000 and the monetary multiplier will increase from 4 to 10.
C. Fall by $2,000 and the monetary multiplier will decline from 10 to 4.
D. Rise by $6,000 and the monetary multiplier will increase from 4 to 10.
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