If a depositor withdraws $300 from his deposit at abank, then thebank's reserves

A.

increase by$300.

B.

fall by $300.

C.

fall by less than $300.

D.

increase by less than$300.

Other things being thesame, a bank with a greater amount of capital

A.

is less liquid.

B.

is more liquid.

C.

has a lower risk of failure.

D.

has a higher rate of return on equity to the owners.