Which of the following is not a possible source of last-minute reserves for a private bank?
A) Selling bonds.
B) Borrowing reserves from other banks.
C) Raising the discount rate.
D) Borrowing reserves from the Federal Reserve System.

Question

Quizplus · Accepted Answer

Raising the discount rate is not a source of reserves for private banks. It is a policy tool used by the Federal Reserve to control the amount of reserves in the banking system. Selling bonds, borrowing reserves from other banks, and borrowing reserves from the Federal Reserve System are all possible sources of last-minute reserves for a private bank.

Which of the Following Is Not a Possible Source of Last-Minute