When the Fed wishes to increase the reserves of the member banks,it

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When the Fed wishes to increase the reserves of the member banks, it can buy securities from the banks. This increases the amount of reserves that the banks hold, since the banks receive payment in the form of increased deposits in their accounts at the Fed. This process is known as open market operations and is a common tool used by the Fed to influence the money supply in the economy. Increasing the reserves of member banks helps to increase the supply of credit and can help to stimulate economic growth.

When the Fed Wishes to Increase the Reserves of the Member