If the Fed Sells Government Securities to a Member of the Nonbank

Multiple Choice

If the Fed sells government securities to a member of the nonbank public,then the resulting effect on the quantity of money is

A) much larger than if the securities were sold to a bank.
B) much smaller than if the securities were sold to a bank.
C) the same as if the securities were sold to a bank.
D) that there is no change in the quantity of money.
E) None of the above answers is correct.