The appropriate answer to the given question is option A bank decreases their bank rate.
What is a federal reserve?
The Federal Reserve is the nation's central bank. The Fed oversees the biggest banks in the country, sets monetary policy, and offers financial support to the federal government of the United States.
The complete part of the question is attached in the image below:
The rate at which the Federal Reserve loans to commercial banks is known as the discount rate. Commercial banks, on the other hand, are compelled to alter their pricing in the direction of the discount rate in order to maintain a profit.
Hence option A is correct.
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