Answer:
D) has too many reserves and will increase its lending
If the bank has a reserve ratio is 0.33 it means that it has to keep 33% of all its deposits as reserves and it can lend 67% of all deposits. So if the bank has deposit liabilities of 100 million it needs to keep 33 million (100 million*0.33) in reserve and it can lend out 67 million (100 million *0.67). Because the bank has reserves of 50 million it means that it has only lend 50 million and can lend 17 million more(67 million - 50 million). So this means that the bank has more reserves than it needs to keep and will increase its lending.
Explanation: