Get an AnswerIf the central bank has an interest rate target, why would an increase in the demand for bank reserves lead to a rise in the money supply?Smart Writing ServicesOctober 25, 2017 7:43 amOctober 25, 2017Previous ArticleWhat are the main benefits and costs of monetary union? What are the main criteria for the optimality of a currency area?Next ArticleThe benefits of central bank lending to banks (rediscount operations) to prevent bank panics are obvious. What are the costs?