asked 200k views
1 vote
When the fed purchases government securities from a commercial bank, the bank?

1 Answer

4 votes
When the fed purchases government securities from a commercial bank the fed will raise the bank's reserves on deposits with the fed and the assets or government securities that belong to the fed will also increase. The reserves of the banking system will also increase by the same amount that was purchased.
answered
User Mark Mercurio
by
7.7k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.