If Bank A sells a $100,000 U.S. Treasury bond to the Fed, Bank A's excess reserves will:

Name: If Bank A sells a $100,000 U.S. Treasury bond to the Fed, Bank A's excess reserves will:
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When Bank A sells a $100,000 U.S. Treasury bond to the Fed, the Fed will pay Bank A with newly created reserves. Therefore, the excess reserves of Bank A will increase by the same amount as the payment, which is $100,000.

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