When the Fed purchases Treasury securities to finance a government budget deficit,

Select one:

a.the money supply falls.

b.the monetary base rises.

c.the monetary base falls.

d.both the monetary base and the money supply remain unchanged.

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

Select one or more:

a.both sell government bonds and extend discount loans to banks.

b.sell government bonds.

c.purchase government bonds.

d.extend discount loans to banks.