If the discount rate is raised, banks choose to borrow
A.       more from the Fed so reserves increase.
B.       more from the Fed so reserves decrease.
C.       less from the Fed so reserves increase.
D.       less from the Fed so reserves decrease.
Answer:B
If the discount rate is raised, banks choose to borrow
A.       more from the Fed so reserves increase.
 B.       more from the Fed so reserves decrease.
 C.       less from the Fed so reserves increase.
 D.       less from the Fed so reserves decrease.
