Which of the following explain why an increase in interest that bank receive from RBNZ on the required and excess reserves that banks hold with RBNZ, would also increase the interest rates that commercial banks charge their borrowers? Since the interest that banks receive from RBNZ on excess reserves represents an opportunity cost for banks when lending to their borrowers, a higher rate from RBNZ will require a higher reward for banks when lending to consumers. If the interest paid to commercial banks from RBNZ is increased, banks will deposit more of their excess reserves with RBNZ. This will increase the rates for households and businesses that borrow from RBNZ directly too. Because the interest rate that banks receive from RBNZ on reserves and the interest rate that banks charge borrowers must legally be the same, a higher rate from RBNZ must equal a higher reward for banks when lending to consumers and businesses. Since the interest that banks receive from R B N Z on excess reserves represents the reward for banks when lending to their borrowers, a higher rate from RBNZ equals a higher reward for banks when lending to consumers