Reservations or Contractions ?

Please look at this question.

"The executive officer's memorandum cited the investors'_____ about using investment funds for research into alternative energy sources.

(1) reservations (2) contractions

The correct answer is (1) reservations.But I couldn't understand the meaning of the sentence even though putting the word of "reservations". The investors' reservations ? Reservation for what ?

Isn't the meaning of "reservations" "Booking" ? Is it a kind of allowance ? Could someone explain to me for that a little bit ?

Thanks in advance.