History, 25.01.2020 11:31 jacqielinehdjzj

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.

Answers: 3

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The correct option is A.
The central bank of each nation usually require the commercial banks to hold a certain amount of money in reserve; this amount usually depend on the amount of deposits that the bank have. When the central bank ask a commercial bank to hold more money in reserve, this implies that the bank will have less money to borrow the investors and this will lead to an increase in the interest rate. The reverse is also true; that is, if a commercial bank hold only a little amount of money in its reserve,then it will have more money to lend to the borrower and the interest rate for borrowing will be lower.

Answer from: wonderwonder2748

It's A on edgenui.ty

Answer from: Quest

explanation:

not everyone in america is free. it is has always been a unequal society. and yet people come in swarms, in search of better lives. some are brought as children, unaware, unknowing. some arrive and just don’t leave. they build lives, pay taxes, raise families. some enter illegally, fleeing persecution in their home country.

there are many reasons why human beings are so attracted to america, despite its history of bitterness towards immigrants.

there are almost two million immigrants brought to the us when they were children. president donald trump and his collaborators are determined to rid the us of as many undocumented immigrants as they can, and stop others from coming because none of their ancestors were immigrants.

america has so many things and yet it lacks the one thing that humanity needs to fully thrive. and so this country will not be at peace in itself until it resolves the pain at the heart of slavery, attacking immigrants, and crumble the rights of those with less power.

Answer from: Quest

The answer should be europe

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What happens when a bank is required to hold more money in reserve?

it has less money f...

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