When the reserve requirement changes,which of the following will change for an individual bank?

Question

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When the reserve requirement changes, it directly affects a bank's required reserves, excess reserves, and lending capacity. Required reserves are the minimum amount of reserves a bank must hold, determined by the reserve requirement. Excess reserves are any reserves the bank holds above the required minimum. Changes in the reserve requirement alter the amount of funds a bank must hold in reserve, thereby affecting its capacity to lend.

When the Reserve Requirement Changes,which of the Following Will Change