When the Federal Reserve makes an open market purchase,the Federal Reserve buys reserves from the banking system.

Name: When the Federal Reserve makes an open market purchase,the Federal Reserve buys reserves from the banking system.
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When the Federal Reserve makes an open market purchase, it buys securities (such as government bonds) from the banking system, which increases the reserves of the banking system, not buys reserves directly.

When the Federal Reserve Makes an Open Market Purchase,the Federal