Recall Application 2, "The Growth in Excess Reserves" to Answer

Multiple Choice

Recall Application 2, "The Growth in Excess Reserves" to answer the following questions:
-Based on what you learned from the application, the Fed can induce banks to lend more and increase the money supply by:

A) lowering the interest rate for excess reserves.
B) requiring banks to hold on to more excess reserves.
C) raising the interest rate for excess reserves.
D) raising the reserve requirement.