If the Fed Purchases Government Securities on the Open Market,the

Multiple Choice

If the Fed purchases government securities on the open market,the money supply will

A) decrease
B) increase only if the seller of those securities is a commercial bank
C) increase only if the seller of those securities is a commercial bank belonging to the Fed
D) increase through the system of securities dealers rather than through the commercial banking system
E) increase through the commercial banking system regardless of who the seller is