2. If you were the president of a bank which was not currently meeting the reserve requirement set by the Fed, what would you do?

a.) Borrow reserves from other banks and pay a rate of interest called the federal funds rate.

b.) Borrow reserves from other banks and pay a rate of interest called the discount rate.

c.) Borrow reserves from the Fed and pay a rate of interest called the prime rate.

d.) Borrow reserves from the U.S. Treasury and pay a rate of interest called the federal funds rate.