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The Federal Reserve (the Fed) is the central bank of the United States with the power to create money. When the Fed decides to increase

The Federal Reserve

(the Fed)

is the central bank of the United States

with the power to create

money.

When the Fed decides to increase the money supply by creating more money, how do

they go abo

ut doing this?

What role do banks play in this process? What is it that the

Federal

Reserve buys and sells to

achieve their goal?

Where does the money come from to pay for all

their purchases?

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