An open market purchase of Treasury securities by the Federal Reserve causes the reserves of banks to rise.

Name: An open market purchase of Treasury securities by the Federal Reserve causes the reserves of banks to rise.
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When the Federal Reserve purchases Treasury securities in an open market, it pays for them by crediting the seller's account at a commercial bank. This increases the reserves of the bank and can lead to an expansion of the money supply as banks lend out the excess reserves.

An Open Market Purchase of Treasury Securities by the Federal