Arrange the following steps in the correct order to illustrate the process through which reserve requirements influence the lending capacity of commercial banks: A) Central bank issues reserve requirement policy, B) Banks adjust their reserves accordingly, C) Banks determine available funds for lending, D) Interest rates are influenced by the change in loan availability.

The process begins when the central bank issues a reserve requirement policy, which tells banks how much money they must keep in reserve and not lend out. After this, banks adjust their reserves based on the new policy, making sure they have the required amount set by the central bank. Once banks have their reserves in order, they can determine how much money they have available for lending to customers and businesses. This change in the amount of money that banks can lend affects loan availability, which in turn influences interest rates; if banks can lend more, interest rates may go down, making loans cheaper. For example, if a central bank lowers reserve requirements, banks can lend more money, leading to lower interest rates and encouraging more borrowing.