uppose 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 what will happen First bank needs to obtain 10,000 in reserves to meet the reserve requirement First bank now has excess reserves and can lend up to 90 000 if it wishes First bank will try to reduce deposits so it meets the required reserve ratio First bank mau loan all 100 000 if it wishes