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Which sentence best completes the diagram?

A. Investors are more likely to purchase bonds.
B. Investors are less likely to purchase bonds.
C. Banks are less likely to lend money.
D. Banks are more likely to lend money.

Which sentence best completes the diagram A Investors are more likely to purchase bonds B Investors are less likely to purchase bonds C Banks are less likely to class=

Respuesta :

anthougo

When a central bank raises interest rates on reserves, C. Banks are less likely to lend money.

What are the effects of increased interest rates on reserves?

Increased interest rates affect reserves by discouraging banks from lending.

When interest rates increase, they cause:

  • A decrease in inflation
  • Goods and services become more expensive
  • Borrowing money becomes more costly.

Thus, when a central bank raises interest rates on reserves, C. Banks are less likely to lend money.

Learn more about interest rates on reserves at https://brainly.com/question/27962333

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