The Fed plans to raise the discount rate to 7%. This indicates that: a. banks must hold funds in their vault or on deposit with the Fed equal to at least 7% of their deposits. b. the amount of money in circulation can be no more than 7% greater than the amount of gold held in reserve by the government. c. the Fed will pay 7% on any securities issued by the federal government during the current time period. d. banks borrowing funds from the Fed will now pay 7% on the amount they borrow.