Question
What would be the effect of an increase in the reserve requirement? (1 point)
• Banks would make fewer loans because they would have to keep more money in reserves
• Banks would offer lower interest rates to borrowers
Banks would borrow more money to make loans
• Banks would make more money in interest off of loans
• Banks would make fewer loans because they would have to keep more money in reserves
• Banks would offer lower interest rates to borrowers
Banks would borrow more money to make loans
• Banks would make more money in interest off of loans
Answers
GPT 3.5
• Banks would make fewer loans because they would have to keep more money in reserves
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