Assume University Bank desires to hold 10% of deposits as reserve balances. Based on the t -account below:

T-Account for University Bank
Assets ($nillions) Liabillities (%millions)
loans 40 deposites 100
securities 40
reserve balances 20

a. a University Bank 's allocation of assets is its desired allocation of assets so it will not change its balance sheet.
b. University Bank is holding $10 million more in reserve balances than it desires to hold.
c. University Bank is holding $20 million more in reserve balances than it desires to hold.
d. University Bank is holding more loans and securities than it desires to hold.