The Fed buys U.S. government securities from banks in order to

Name: The Fed buys U.S. government securities from banks in order to
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Question

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When the Federal Reserve buys U.S. government securities from banks, it increases the reserves of those banks, which can then lead to a decrease in the federal funds rate. This is because banks have more reserves and can lend to one another at a lower rate.

The Fed Buys U