If Commercial Banks Are Increasing Their Borrowing from the Fed

Multiple Choice

If commercial banks are increasing their borrowing from the Fed while the Fed is selling government securities, the borrowing of the commercial banks from the Fed will tend to:

A) ​reinforce the contractionary open market operations policy.
B) ​reinforce the expansionary open market operations policy.
C) ​counteract the contractionary open market operations policy.
D) ​counteract the expansionary open market operations policy.