How would an increase in the required reserves ratio affect borrowers?

A. It would force banks to lower their interest rates, which would benefit many borrowers.
B. It would force banks to raise their monthly charges, which would hurt many borrowers.
C. it would force banks to recall a significant number of loans, which would hurt many borrowers.
D. It would prompt banks to lend more money, which would benefit many borrowers.

Question

How would an increase in the required reserves ratio affect borrowers?  

A. It would force banks to lower their interest rates, which would benefit many borrowers.
B. It would force banks to raise their monthly charges, which would hurt many borrowers.
C. it would force banks to recall a significant number of loans, which would hurt many borrowers.  
D. It would prompt banks to lend more money, which would benefit many borrowers.

anonymous · Answer

@Preetha