We would expect which of the following to occur when the central bank conducts an open market sale of bonds?

Question

Quizplus · Accepted Answer

When the central bank conducts an open market sale of bonds, it results in a decrease in the reserves held by banks. Due to this, banks are left with less money to lend to customers, which leads to a decrease in the quantity of money in circulation. This ultimately leads to a decrease in the monetary base.

We Would Expect Which of the Following to Occur When