To Prevent Shortages of Cash During a Crisis,the Fed

Multiple Choice

To prevent shortages of cash during a crisis,the Fed:

A) saves up cash in bank vaults around the country and the world.
B) reduces liquidity in the economy so that more cash can be saved.
C) sells U.S.government securities to commercial banks.
D) demands interest payments on reserves held at the Fed.
E) increases the discount rate.