An increase in liquid reserve requirements by the central bank of Nigeria will result in

An increase in liquid reserve requirements by the central bank of Nigeria will result in
  • A.
    a reduction in commercial banks’ excess reserves
  • B.
    more commercial bank loan to members of the public
  • C.
    an increase in commercial banks excess reserves
  • D.
    no change in commercial banks excess reserves
  • E.
    a reduction in central banks gold reserves
Correct Answer: Option C
Explanation
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