Suppose the Bank of Canada raises its target for the overnight interest rate and longer-term rates in the market rise as a result. Households' and firms' demand for loans from the commercial banks would ________. In order to accommodate this change, the commercial banks require ________.

Select one:

a. rise; more currency

b. fall; fewer cash reserves

c. rise; more government securities

d. remain stable; no change to their reserves

e. fall; more cash reserves