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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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