When the Fed buys $100 worth of bonds from a primary dealer,reserves in the banking system

Name: When the Fed buys $100 worth of bonds from a primary dealer,reserves in the banking system
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When the Fed buys bonds from a primary dealer, it pays for the bonds by increasing the reserves of the primary dealer's bank account with the Fed. This increases the overall level of reserves in the banking system by the amount of the purchase, which in this case is $100.

When the Fed Buys $100 Worth of Bonds from a Primary