Lowering the Discount Rate _____

Lowering the discount rate _____

A) encourages banks to borrow from the Fed so they can more easily accommodate their customers' needs for loans.
B) encourages business customers to borrow directly from the Fed.
C) reduces the amount of reserves banks are required to keep.
D) automatically reduces excess reserves.
E) encourages banks to sell U.S. government securities and increase their cash reserves.