If the Federal Funds Rate Falls Below the Discount Rate,banks

Multiple Choice

If the federal funds rate falls below the discount rate,banks will decrease their borrowings from __________ and __________ their borrowings from __________.It follows that when one bank borrows from __________,reserves in the banking system __________.

A) other banks; increase; the Fed; another bank; remain unchanged
B) the Fed; decrease; other banks; another bank; remain unchanged
C) other banks; increase; the U.S.Treasury; the Treasury; increase
D) the Fed; increase; other banks; another bank; remain unchanged
E) none of the above