1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tasya [4]
2 years ago
6

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

History
2 answers:
Mrac [35]2 years ago
8 0

Answer:

Explanation:

when a bank is required to hold more money in reserve it reduces the amount of money the banks have for lending the people. since the supply of money in the bank is lower the bank charge more when lending to its people thus resulting in interest rates rising up.

charle [14.2K]2 years ago
5 0

A bank is required to hold more money in reserve because bank has low amounts to create loans for the people or for its consumers. The central bank (like reserve bank in India) of each country sets a certain amount of money or percentage usually that the commercial are required to holds  in reserve every time, this amount usually depends on the amount of deposits that the bank have.

The excess amount or limit as directed by central banks means commercial banks have less money to borrow the investors and this will lead to an increase in the interest rate and vice a versa.

You might be interested in
Thomas Jefferson supported the Constitution under which of the following conditions?
vampirchik [111]

Answer:

The answer would be a. The federal government would have significantly less power than the state governments.

Explanation:

Jefferson was an anti-federalist, meaning he did not want the federal government to have more power than the states. If the federal government was too powerful, Jefferson worried it would take the powers given to the states by the constitution.

5 0
2 years ago
Who abolished slavery in western territories while passing funding for the Mexican-American War?
attashe74 [19]
Wilmer proviso would be the answer if that question
6 0
3 years ago
Would the amount of matter making up a person be the same or different on the moon rather then the planet
Nesterboy [21]
Id assume itd be the exact same. The only real difference is how gravity handles the matter. If Im not mistaken you are unable to create more matter from nothing as well as the fact you cant make it just disappear.
5 0
3 years ago
One modern-day social structure that had its origin in the Neolithic era is ________.
erastova [34]

Answer:

Trade of goods and services" since trade began with the domestication of plants and animals during this time.

4 0
3 years ago
Read 2 more answers
What is a small group of people who interact over a relatively long period of time on a direct and personal basis?
DaniilM [7]
A primary group is a <span>small group of people who interact over a relatively long period of time on a direct and personal basis. This is opposed to a secondary group, where the members have an impersonal and indirect relationship.</span>
8 0
3 years ago
Read 2 more answers
Other questions:
  • Who wrote the story of Plymouth and was the second governor?
    12·1 answer
  • Talking about the Universal Declaration of Human Rights are some of the obstacles to enforcing and realizing these articles? Wha
    9·1 answer
  • What kind of artists paired ideals of renaissance art with sixteenth-century spiritual feelings?
    5·2 answers
  • What other religions are represented in afghanistan?
    15·1 answer
  • 1860- This person and his Redshirts win victories that will soon lead to the creation of Italy.
    12·2 answers
  • Which claim would most likely come from an argumentative essay rather than
    9·1 answer
  • The __________ were the framework for the settlement and government of the Northwest Territory.
    14·2 answers
  • Explain the economic policy of the British
    10·1 answer
  • how did the terms of peace from ww1 lead to the rise of totalitarian dictators specifically adolf hotler, benito mussolini, and
    9·1 answer
  • What does North Carolina's surrender on April 26, 1865, suggest?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!