Which of the following combinations of Fed actions would be most effective in "mopping up" reserves away from the banking system?
A) reducing the interest paid on excess reserves and also doing "repos" with banks and nonbanks
B) raising the interest paid on excess reserves and also doing "repos" with banks and nonbanks
C) reducing the interest paid on excess reserves and also doing "reverse repos" with banks and nonbanks
D) raising the interest paid on excess reserves and also doing "reverse repos" with banks and nonbanks
Correct Answer:
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