Question

What would be the effect of an increase in the reserve requirement?(1 point)
Responses

Banks would offer lower interest rates to borrowers
Banks would offer lower interest rates to borrowers

Banks would make fewer loans because they would have to keep more money in reserves
Banks would make fewer loans because they would have to keep more money in reserves

Banks would borrow more money to make loans
Banks would borrow more money to make loans

Banks would make more money in interest off of loans

Answer 1

Banks would make fewer loans because they would have to keep more money in reserves