Question

select the supply of reserves, the upper end of the demand for reserves, lower end of the demand for reserves, or both the upper and lower end of the demand for reserves. then selected the direction of the shift. the federal reserve sells bonds on the open market.

Explanation:

When the Federal Reserve sells bonds on the open market, it withdraws reserves from the banking system. This directly reduces the supply of reserves in the market. The demand for reserves (both upper and lower ends) remains unchanged in this operation, as the action targets the supply side of reserves.

Answer:

Select the Supply of Reserves, and shift it to the left (decrease direction).