If the Fed Wanted to Use All Four of Its

Multiple Choice

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

A) buy bonds, reduce the discount rate, reduce reserve requirements, and reduce the interest rate paid on excess reserves.
B) sell bonds, reduce the discount rate, reduce reserve requirements, and reduce the interest rate paid on excess reserves.
C) sell bonds, increase the discount rate, increase reserve requirements, and increase the interest rate paid on excess reserves.
D) buy bonds, increase the discount rate, increase reserve requirements, and increase the interest rate paid on excess reserves.