When the Fed Raised Interest Rates Between 2004 and 2007

When the Fed raised interest rates between 2004 and 2007, the Federal Reserve:

A) bought U.S. government securities, thereby creating and supplying additional federal funds.
B) sold U.S. government securities, thereby contracting the amount of funds available to the federal funds market.
C) sped up the clearing of checks to make more funds available to banks.
D) encouraged banks to loan out funds to ease their reserve requirements and thus lower the demand for federal funds.

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