The Fed's Sale of Government Securities in the Open Market

Multiple Choice

The Fed's sale of government securities in the open market would:

A) increase depository institutions' excess reserves, interest rates, and borrowing by households and businesses.
B) decrease depository institutions' excess reserves, interest rates, and borrowing by households and businesses.
C) increase depository institutions' excess reserves, lower interest rates, and increase borrowing by households and businesses.
D) decrease depository institutions' excess reserves, increase interest rates, and decrease borrowing by households and businesses.