If the Fed Wanted to Use All Three of Its

Multiple Choice

If the Fed wanted to use all three of its major monetary control tools to decrease the money supply, it would:

A) buy bonds, reduce the discount rate, and reduce reserve requirements.
B) sell bonds, reduce the discount rate, and reduce reserve requirements.
C) sell bonds, increase the discount rate, and increase reserve requirements.
D) buy bonds, increase the discount rate, and increase reserve requirements.