In a Particular State, Many Commercial Banks Struggle to Lend

Multiple Choice

In a particular state, many commercial banks struggle to lend money to the borrowers due to lack of money supply. The Fed buys securities from these banks and this creates a smooth flow of money for the banks to conduct their transactions. In this case, which of the following tools has the Fed most likely used to control the money supply?

A) Open market operations
B) Discount rate changes
C) Reserve requirement changes
D) Interest rate charges