Similar to the sales to bank, the sale of securities to non-banks works exactly like the purchase from non-banks, and it also has the opposite effect on bank deposits and the quantity of money.

In this case, when the Fed sells $2.5 Million of securities to the Non-bank dealer, it reduces the Reserves account for Other Bank by $2.5 Million, excess reserves for that bank declines by $2.475 Million, and the credit potential drops by $247.5 Million. The transaction decreases bank deposit liabilities (and the quantity of money) by $2.5 Million (which require 1% reserves, explaining the odd declines in excess reserves and credit potential).