Helo Question 2 of 10
What happens when a country's central bank increases reserve requirements
for banks?
A. Banks are forced to set aside more of their money instead of
lending it.
B. Banks must pay the government interest on all cash they keep on
hand.
C. Banks must pay a higher interest rate to borrow money from the
government
D. Banks are required to sell all of their treasury securities on the
open market
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