If the Fed buys U.S. government securities

Name: If the Fed buys U.S. government securities
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Question

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When the Fed buys U.S. government securities from banks, it increases their reserves, which in turn leads to an increase in the supply of funds in the banking system. This causes the federal funds rate to fall since banks have more funds to lend and are willing to lend them at lower interest rates.

If the Fed Buys U.S. Government Securities