In an open market purchase, the Fed ________ government securities, which ________ bank reserves.
A) buys; increases
B) buys; decreases
C) sells; increases
D) sells; decreases

Name: In an open market purchase, the Fed ________ government securities, which ________ bank reserves. A) buys; increases B) buys; decreases C) sells; increases D) sells; decreases
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In an open market purchase, the Federal Reserve buys government securities, which increases bank reserves by adding money to the banking system.

In an Open Market Purchase, the Fed ________ Government Securities