when the fed buys bonds from the public, banks' reserves and the quantity of money in circulation .

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06-12-2022
Business

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when the fed buys bonds from the public, banks' reserves and the quantity of money in circulation .

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kjuli1766 kjuli1766 · Answer 1 · 2022-12-17T10:37:01+01:00

The Federal Reserve buys and sells authorities securities to control the money supply and interest quotes. This hobby is known as open market operations.

The money supply is the overall sum of money—coins, coins, and balances in bank debts—in flow.

Open market operations is a part of financial coverage devices that Fed utilize in controlling the cash deliver in an economic system. when there is a want to lessen the cash deliver, then Fed must sells the authorities securities to the general public for you to reduce the cash supply.

Learn more about open market operations here :-

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