The sale of securities to banks works exactly like the purchase from banks, except that it has the opposite effect. In this case, when the Fed sells $10 Million of securities ($5 Million each to Your Bank and Other Bank) the Reserves account for each of these banks gets reduced by $5 Million, excess reserves for each declines by $5 Million, and the credit potential drops by $500 Million. The transaction, however, does not affect the quantity of money.