Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Our Q&A platform offers a seamless experience for finding reliable answers from experts in various disciplines. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

When the Fed buys federal government securities on the open market from commercial banks, then, over time, the:

Sagot :

ayokenny2001

Increases the reserves of commercial banks.

Open market is one of the monetary policies of the federal government to regulate the supply of money in an economy.

When the Fed buys federal government securities on the open market from commercial banks, the reserves of commercial banks increases thereby enabling banks to have more funds to grant loans and investments.

Fed buying federal government securities such as government bond, adds money to the system, making loans easier to obtain and interest rates decline.

learn more at: https://brainly.com/question/14256204

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.