If the Fed sells U.S. government securities to banks, the federal funds rate and banks' reserves at the Fed .

Name: If the Fed sells U.S. government securities to banks, the federal funds rate and banks' reserves at the Fed .
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When the Fed sells U.S. government securities to banks, it reduces the reserves that banks hold at the Fed, leading to a decrease in reserves. This reduction in reserves typically causes the federal funds rate to rise as banks have less money to lend to each other.

If the Fed Sells U