The Fed can use all of the following except ________ to change the lending capacity of the banking system.

Name: The Fed can use all of the following except ________ to change the lending capacity of the banking system.
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Question

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The Federal Reserve can change the lending capacity of the banking system by adjusting the reserve requirement, conducting open market operations, and changing the discount rate. However, there is no such thing as an excess reserve requirement, so option B is not correct.

The Fed Can Use All of the Following Except ________