Question 10 Lowering the discount rate has the effect of O turning required reserves into excess reserves. O turning excess reserves into required reserves. O making it less expensive for commercial banks to borrow from the Fed. O making it more expensive for commercial banks to borrow from the Ferd. Question 11 If the Federal Reserve increases the interest paid on excess reserves that b anks hold at the Federal Reserve Banks, then the change in this tool of monetary policy has the effect of O increasing bank lending. O decreasing bank lending. increasing the reserve ratio. O decreasing the reserve ratio.
