In an open market purchase, the Fed government securities, which bank reserves.

Name: In an open market purchase, the Fed government securities, which bank reserves.
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In an open market purchase, the Fed buys government securities from the market, which increases bank reserves as the sellers of these securities deposit the payment received from the Fed in their bank accounts. This increased availability of reserves in the banking system can lead to an expansion of credit, lending, and money supply.

In an Open Market Purchase, the Fed Government Securities, Which