If the Fed buys $100,000 in U.S. government securities from a commercial bank, the bank now has an additional $100,000 of

Name: If the Fed buys $100,000 in U.S. government securities from a commercial bank, the bank now has an additional $100,000 of
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When the Fed buys government securities from a commercial bank, the bank's reserves increase by the amount of the purchase, which in this case is $100,000. This increase is reflected in the bank's actual reserves.

If the Fed Buys $100,000 in U