By buying bonds,the Fed decreases the quantity of reserves in the banking system and decreases the money supply.

Name: By buying bonds,the Fed decreases the quantity of reserves in the banking system and decreases the money supply.
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By buying bonds, the Fed increases the quantity of reserves in the banking system, which can increase the money supply. This is part of an expansionary monetary policy aimed at stimulating economic growth.

By Buying Bonds,the Fed Decreases the Quantity of Reserves in the Banking