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3. FED's creation of money out of thin air through buying of securities. Suppose the Open Market Committee buys $10 of securities from Bank A.

3. FED's creation of money out of thin air through buying of securities. Suppose the Open Market Committee buys $10 of securities from Bank A. Reconstruct the Balance Sheet. Balance Sheet for Bank A 3. FED's creation of money out of thin air through buying of securities. Suppose the Open Market Committee buys $10 of securities from Bank A. Reconstruct the Balance Sheet. Balance Sheet for Bank A

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