Through Changes in the Discount Rate,the Federal Reserve Can

Multiple Choice

Through changes in the discount rate,the Federal Reserve can

A) force banks to increase reserves but can't force them to decrease reserves
B) force banks to decrease reserves but can't force them to increase reserves
C) force either an increase or a decrease in reserves
D) give banks an incentive to either increase or decrease reserves but cannot force them to change
E) affect a commercial bank's major customers by lending to them directly