What Kind of Fed Activity Is Likely to Be Evident

Multiple Choice

What kind of Fed activity is likely to be evident when the Fed desires to drain reserves out of the banking system and underscore a policy move toward restraint?

A) No Fed buying or selling is likely to occur.
B) The Fed is likely to use reverse repurchase agreements.
C) The Fed is likely to engage in system repurchase agreements.
D) The Fed is likely to engage in outright sales.