Question

How could the federal reserve encourage banks to lend out more of their reserves?

Answer 1

by REDUCING THE DISCOUNT RATE.

Step-by-step explanation:

Answer 2

Had to look for the options and here is my answer.
How the Federal Reserve could persuade banks to lend out more of their reserves is by REDUCING THE DISCOUNT RATE. The Federal Reserve is known to be the central bank of the United States which regulates the financial activities of the nation and how this affects their economy. Hope this helps.