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12. When the Treasury sells a security to a security dealer this will cause: a. increase the national debt b. decrease the national debt c.

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12. When the Treasury sells a security to a security dealer this will cause: a. increase the national debt b. decrease the national debt c. increase the reserves of the banking system d. decrease the reserves of the banking system e. both "a" and "c" are correct answers f. both "a" and "d" are correct answers g. both "b" and "c" are correct answers h. both "b" and "d" are correct answers i. none of the above answers are correct. In the space provided below, use the appropriate balance sheets to show why you selected your answer to the previous question. Be careful to label each balance sheet, the accounts which are changing, and the direction of change in the accounts

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