Several large banks have a shortage of cash to lend to customers. What action could the Federal Reserve take to increase the liquidity for the banks?(1 point)
Responses
Reduce the amount of repurchase agreements so that banks can lend to each other at a lower interest rate.
Reduce the amount of repurchase agreements so that banks can lend to each other at a lower interest rate.
Increasing the reserve requirements so that banks have more cash available in the Federal Reserve district banks.
Increasing the reserve requirements so that banks have more cash available in the Federal Reserve district banks.
Reducing the reserve requirements to increase the amount available for banks to lend.
Reducing the reserve requirements to increase the amount available for banks to lend.
Increase the federal funds rate so that banks earn more in interest from customers' loans.