Which one of the following would increase reserves for the banking system?

Question

Quizplus · Accepted Answer

When the Fed buys government securities on the open market, it injects money into the banking system, which increases the reserves that banks hold. This is because banks that sell securities to the Fed receive payment for those securities, which gets deposited into their reserve accounts at the Fed. This, in turn, increases the amount of funds that banks have available to lend or use for other purposes.

Which One of the Following Would Increase Reserves for the Banking