When the Fed buys U.S. government securities from a bank, the Fed

Name: When the Fed buys U.S. government securities from a bank, the Fed
Brand: Quizplus
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Question

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When the Fed buys U.S. government securities from a bank, it increases the bank's reserves at the Fed. This is because the Fed pays for the securities with newly created reserves, which are then deposited into the bank's account at the Fed. This increases the bank's reserves and its ability to make loans and create money in the economy.

When the Fed Buys U