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

it has less money for loans.
it has less money for operations.
it has less money for interest payments.
it has less money for withdrawals.

The correct option is A.
The central bank of each nation usually require the commercial banks to hold a certain amount of money in reserve; this amount usually depend on the amount of deposits that the bank have. When the central bank ask a commercial bank to hold more money in reserve, this implies that the bank will have less money to borrow the investors and this will lead to an increase in the interest rate. The reverse is also true; that is, if a commercial bank hold only a little amount of money in its reserve,then it will have more money to lend to the borrower and the interest rate for borrowing will be lower.

It's A on edgenui.ty