Treasury bills bought by the Fed from the public are paid for with checks drawn on which of the following?

Name: Treasury bills bought by the Fed from the public are paid for with checks drawn on which of the following?
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Question

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When the Federal Reserve (the Fed) purchases Treasury bills from the public, it pays for them with checks drawn on itself. This process increases the reserves of banks and effectively injects money into the banking system, influencing the money supply and interest rates.

Treasury Bills Bought by the Fed from the Public Are