7. In the market for reserves, when the federal funds rate is 3%, lowering the discount rate from 5% to 4% .; when the federal funds rate is 5%, lowering the discount rate from 5% to 4% A) lowers the federal funds rate, has no effect on the federal funds rate B) has no effect on the federal funds rate, lowers the federal funds rate C) raises the federal funds rate, has no effect on the federal funds rate D) has no effect on the federal funds rate, raises the federal funds rate 8. Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the central bank, and one million dollars in required reserves. Given this information, we can say First National Bank faces a required reserve ratio of percent. A) ten B) twenty C) eighty D) ninety