Suppose the reserve requirement is $0\%.$ Suppose further that the total amount of bank deposits in the banking system is $$500$ million, and no loans have been made. The Federal Reserve engages in open market operations that reduce bank deposits to $$250$ million. After this change, the Fed imposes a $10\%$ reserve requirement on the banking system. What is the change in excess reserves in the banking system after the Fed's intervention?

Multiple Choice

$-$$$250$ million

$-$$$225$ million

$-$$$275$ million

Excess reserves will not change since the initial reserve resulirement is $0\%$