When the Fed conducts open market sales,
A.      it sells Treasury securities, which increases the money supply.
B.      it sells Treasury securities, which decreases the money supply.
C.      it borrows from member banks, which increases the money supply.
D.      it lends money to member banks, which decreases the money supply.
Answer:B
When the Fed conducts open market sales,
A.      it sells Treasury securities, which increases the money supply.
 B.      it sells Treasury securities, which decreases the money supply.
 C.      it borrows from member banks, which increases the money supply.
 D.      it lends money to member banks, which decreases the money supply.
