To decrease bank reserves, the Fed can

A) engage in an open market sale.
B) reduce reserve requirements.
C) lower the discount rate.
D) set a lower interest rate for term deposits.

A

Economics

You might also like to view...

Banks create money when they make loans

a. True b. False Indicate whether the statement is true or false

Economics

Governments establish price floors when it is believed the market equilibrium price is too high

Indicate whether the statement is true or false

Economics