Which Statement Best Describes the Outcome of a Decrease in the Bank

Multiple Choice

Which statement best describes the outcome of a decrease in the bank rate?

A) Banks will borrow less from Bank of Canada, so reserves increase.
B) Banks will borrow less from Bank of Canada, so reserves decrease.
C) Banks will borrow more from Bank of Canada, so reserves increase.
D) Banks will borrow more from Bank of Canada, so reserves decrease.