Question 27 2.84 pts When the Fed sells bonds, the: balances in bank accounts are increased, which drains central bank reserves from the system causing the federal funds rate to increase balances in bank accounts are reduced, which drains central bank reserves from the system causing the federal funds rate to increase balances in bank accounts are reduced, which drains central bank reserves from the system causing the federal funds rate decline. This reduces short term interest rates in the economy. balances in bank accounts are reduced, which adds central bank reserves to the system causing the federal funds rate to decrease