If the Federal Reserve wants to expand reserves in the banking system(that is,increase the money supply),it will

I. purchasegovernmentsecurities.

II. raisethediscount rate.

III. sellgovernmentsecurities.

V. raisereserverequirements.

IV. lowerthediscountrate.

Ionly.

IandIIonly.

II, III, andIV only.

IIIandVonly.

IandVonly.

The Fed offers three types of discount window loans. _______ credit is offered to small institutions with demonstrable patterns of financing needs, _______ credit is offered for short term temporary funds outflows, and _______ credit may be offered at a higher rate to troubled institutions with more severe liquidity problems.

A) Seasonal;emergency;primary

B) Emergency;primary;seasonal

C) Primary;secondary;seasonal

D) Seasonal;primary;secondary

E) Primary;seasonal;emergency