Which of the following increases reserves of depository institutions?

Question

Quizplus · Accepted Answer

Increases in discount loans provide depository institutions with additional reserves, which in turn increases their ability to lend and create money. Increases in the discount rate decrease the willingness of banks to borrow from the Federal Reserve, while open market sales decrease the amount of reserves in the banking system. Decreases in discount loans and increases in open market purchases have the opposite effect.

Which of the Following Increases Reserves of Depository Institutions