Why did fewer state banks choose to become or remain members of the Federal Reserve System during the 1960s and 1970s?

Question

Quizplus · Accepted Answer

During the 1960s and 1970s, nominal interest rates rose, which made the cost of holding reserves more expensive for banks. This discouraged state banks from becoming or remaining members of the Federal Reserve System, as they sought to avoid the higher reserve requirements associated with membership.

Why Did Fewer State Banks Choose to Become or Remain