When the Fed wants to raise interest rates after banks have accumulated large amounts of excess reserves, it would

When the Fed wants to raise interest rates after banks have accumulated large amounts of excess reserves, it would

When the Fed wants to raise interest rates after banks have accumulated large amounts of excess reserves, it would




A) increase the interest rate paid on excess reserves.
B) increase discount rate.
C) conduct massive open market purchase.
D) conduct massive open market purchase



Answer: A