When the Fed buys securities, how much banks hold as excess reserves affects the

Name: When the Fed buys securities, how much banks hold as excess reserves affects the
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When the Fed buys securities, it increases the reserves of banks, which can then lend more, affecting the money supply. The monetary base is directly affected by the Fed's actions, not by excess reserves, and the money multiplier is influenced by the reserve ratio and currency holdings, not directly by excess reserves.

When the Fed Buys Securities, How Much Banks Hold as Excess