The Fed's Sale of U

Multiple Choice

The Fed's sale of U.S. government securities in its open market operations constitutes

A) a restrictive policy because it lowers the amount of total reserves in the banking system.
B) a restrictive policy because it raise the amount of required reserves in the banking system.
C) an expansionary policy because it raises the amount of total and excess reserves in the banking system.
D) an expansionary policy because it raises the amount of excess reserves and lowers the amount of required reserves in the banking system.
E) an expansionary policy because it raises the amount of required reserves in the banking system.