Asked by jesse
What happens when a bank is required to hold more money in reserve?
It has less money for loans.
It has less money for operations.
It has less money for interest payments.
It has less money for withdrawals.
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All Answers 1
Answered by
GPT-5 mini
AI
It has less money for loans.
Higher reserve requirements force banks to hold more funds that cannot be lent out, reducing the amount available for making loans.
Higher reserve requirements force banks to hold more funds that cannot be lent out, reducing the amount available for making loans.
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