Transactions that affect bank reserves can be initiated by the:

Question

Quizplus · Accepted Answer

The nonbank public can initiate transactions that affect bank reserves by depositing or withdrawing funds from their accounts. The Federal Reserve System can also conduct open market operations that involve buying or selling government securities, which affects the level of bank reserves. The U.S. Treasury can also make deposits or withdrawals from their accounts, which can affect bank reserves. Thus, all of the above are correct.

Transactions That Affect Bank Reserves Can Be Initiated by The