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When banks hold a large amount of excess reserves, which of the following tools would the Fed most likely use to encourage banks to lend
When banks hold a large amount of excess reserves, which of the following tools would the Fed most likely use to encourage banks to lend more of these excess reserves?
A. lowering the reserve requirement
B. making an open market sale
C. lowering the interest rate it pays to banks on their reserves
D. lowering the discount rate
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