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True or False. When the Fed buys securities, the total funds of commercial banks decrease by the market value of securities purchased by the Fed.

True or False. When the Fed buys securities, the total funds of commercial banks decrease by the market value of securities purchased by the Fed. This activity initiated by the FOMC's policy directive is referred to as a loosening of money supply growth. Provide at least five sentences of Explanation or calculation to support your answer.

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