If the Fed buys $100 in securities from a commercial bank, the

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When the Fed buys securities from a commercial bank, it credits the bank's reserves account with the Fed. This increases the reserves the bank has on hand, resulting in an increase in the quantity of reserves in the banking system as a whole. However, the Fed's assets do not decrease in this scenario as it has acquired $100 in securities. The quantity of money in the economy is also not directly affected by this transaction.

If the Fed Buys $100 in Securities from a Commercial