If the Fed buys government securities from the non-bank public,then
A)reserves at banks decrease.
B)loans at banks decrease.
C)deposits at banks increase and banks' reserves decrease.
D)deposits at banks increase and banks' reserves increase.
E)deposits at banks decrease and banks' reserves increase.

Question

Quizplus · Accepted Answer

When the Fed buys government securities, it injects money into the economy, increasing bank deposits and reserves.

If the Fed Buys Government Securities from the Non-Bank Public,then