The Fed Prefers That ________ So That ________

Multiple Choice

The Fed prefers that ________ so that ________.

A) banks borrow reserves from each other;banks can monitor each other for credit risk
B) banks borrow reserves from each other;the Fed can monitor banks for credit risk
C) banks borrow reserves from the Fed;banks can monitor each other for credit risk
D) banks borrow reserves from the Fed;the Fed can monitor banks for credit risk