Which of the following Fed actions will increase bank lending? Select one or more answers from the choices shown.

Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box.

check all that apply

• The Fed lowers the discount rate from 4 percent to 2 percent.
• The Fed raises the discount rate from 5 percent to 6 percent.
• The Fed raises the reserve ratio from 10 percent to 11 percent.
• The Fed sells bonds to commercial banks.