Recall Application 2, "The Growth in Excess Reserves" to Answer

Recall Application 2, "The Growth in Excess Reserves" to answer the following questions:
-According to the application, what was the reason why banks started to hold more excess reserves after September 2008?

A) The Fed allowed banks with little excess reserves to be taken over by banks with a large amount of excess reserves.
B) The Fed lent lots of money to banks, which in turn did not lend any of it.
C) The Fed started paying interest on bank reserves.
D) The Fed required that banks hold excess reserves.