When the Reserve Bank ________,the quantity of banks' reserves decreases.
A)raises the required reserve ratio
B)buys government securities
C)increases taxes
D)sells government securities
E)lowers the required reserve ratio

Question

Quizplus · Accepted Answer

When the Reserve Bank sells government securities, it decreases the quantity of banks' reserves as banks buy these securities from their reserves.

When the Reserve Bank ________,The Quantity of Banks' Reserves Decreases