Suppose a country has a consumption tWhich statement best defines reserve requirements? a. They are regulations concerning the interest rate at which banks can borrow from the central bank. b. They are regulations concerning the amount banks are allowed to borrow from the central bank. c. They are regulations concerning the amount of reserves banks must hold against deposits. d. They are regulations concerning reserves banks must hold based on the number and type of loans they make.ax that is similar to a provincial sales tax. If its government eliminates the consumption tax and replaces it with an income tax that includes an income tax on interest from savings, what would most likely happen? a. The interest rate would decrease, and saving would increase. b. The interest rate would increase, and saving would decrease. c. Both the interest rate and saving would increase. d. Both the interest rate and saving would decrease