When the Fed wants to decrease the level of reserves of the banking system, it can

Select one:

a.increase discount loans to banks.

b.buy government bonds from the general public.

c.do any of the above.

d.sell government bonds to banks.

An increase in government securities held by the Fed leads to

Select one:

a.an increase in the money supply.

b.a decline in the monetary base.

c.a decline in the money supply.

d.a decline in the money supply and an increase in the money supply at the same time.