When the Fed buys bonds from the public,it

Name: When the Fed buys bonds from the public,it
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When the Fed buys bonds from the public, it increases the flow of reserves to the banking system. This is because the Fed pays for the bonds by crediting the account of the seller's bank, increasing the bank's reserves. This increase in reserves can then be used by the bank to make loans or purchase other assets, increasing the money supply.

When the Fed Buys Bonds from the Public,it