When the Federal Reserve sells U.S. Treasury securities from the over-the-counter market, it ______ the supply of excess reserves and places ______ pressure on the federal funds rate. O increases; upward O decreases; upward O decreases; downward O increases; downward
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S. Treasury securities, it reduces the amount of reserves available to banks. This is because banks use their reserves to purchase the securities from the Fed. Show more…
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