Which Fed action does NOT directly increase total reserves in the banking system?
A) Lowering the Discount Rate
B) Lowering reserve requirements
C) Buying U.S. Government securities on the open market
D) None of the above

Question

Quizplus · Accepted Answer

Lowering the Discount Rate encourages banks to borrow more from the Fed, potentially increasing reserves, but it does not directly increase reserves like open market operations or changing reserve requirements.

Which Fed Action Does NOT Directly Increase Total Reserves in the Banking