what happens when a bank is required to hold more money in reserve?\no it has less money for loans.\no it…
what happens when a bank is required to hold more money in reserve?\no it has less money for loans.\no it has less money for operations.\no it has less money for interest payments.\no it has less money for withdrawals.
Answer
Brief Explanations:
Banks use deposits to make loans. When more money is held in reserve, there is less available for lending. Operational costs, interest - payment obligations, and funds for withdrawals are not directly related to the amount held in reserve in the way that loanable funds are.
Answer:
It has less money for loans.