Here Is How an Open Market Sale Works: a Commercial

Multiple Choice

Here is how an open market sale works: A commercial bank __________ government securities to (from) the Fed,which lowers the bank's deposits at the __________ and __________ the bank's __________.

A) buys; Fed; lowers; reserves
B) sells; Treasury; raises; reserves
C) sells; Fed; raises; reserves
D) buys; Treasury; lowers; liabilities
E) none of the above