Choose the Correct Answer

Multiple Choice

Choose the correct answer:

A) Regulatory taxes such as reserve requirements create an incentive for banks to remove loans from the balance sheet by selling them without recourse to outside parties.
B) Regulatory taxes such as reserve requirements create an incentive for banks to offer low rate mortgages.
C) Regulatory taxes such as reserve requirements create an incentive for banks limit their lending to large corporates only.
D) None of the listed options are correct.