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In Business / College | 2025-07-07

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

A. It has less money for loans.
B. It has less money for operations.
C. It has less money for interest payments.
D. It has less money for withdrawals.

Asked by brock4560

Answer (1)

When a bank is required to hold more money in reserve, it has less money available for loans, which can impact its profitability. This can also influence operational funds and interest payments. Overall, tighter reserves can restrict lending and economic activity. ;

Answered by GinnyAnswer | 2025-07-07

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