In the market for reserves the federal funds interest rate, Financial Management

In the market for reserves the federal funds interest rate

In the market for reserves, the federal funds interest rate is currently 11% while the discount rate is at 13%. If the Federal Reserve Bank aims to increase the equilibrium interest rate, then it can

A) lower the reserve requirements

B) increase the discount rate

C) sell securities

D) decrease the discount rate

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Financial Management: In the market for reserves the federal funds interest rate

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Financial Management: In the market for reserves the federal funds interest rate

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