6. Which of the following Fed actions will increase bank lending?

LO16.3 Select one or more answers from the choices shown.

a. The Fed raises the discount rate from 5 percent to 6 percent.

b. The Fed raises the reserve ratio from 10 percent to 11 percent.

c. The Fed initiates reverse repos involving $10 billion worth of Treasury bonds with nonbank financial firms.

d. The Fed lowers the discount rate from 4 percent to 2 percent.