Final answer:
An increase in the money supply by the Federal Reserve Bank system gets into the hands of consumers through banks and financial institutions lending out newly created money.
Step-by-step explanation:
To understand how an increase in the money supply by the Federal Reserve Bank system gets into the hands of consumers, we need to understand the process of monetary policy. When the Federal Reserve wants to increase the money supply, it can buy government bonds from banks and other financial institutions. These institutions receive payment in the form of newly created money, which increases the overall money supply.
Once the banks and financial institutions have this new money, they can then lend it out to individuals and businesses. This is done through the process of making loans. Borrowers receive the money and can use it for a variety of purposes, such as purchasing goods, paying bills, or investing in businesses. So, in summary, an increase in the money supply by the Federal Reserve Bank system gets into the hands of consumers through the process of banks and financial institutions lending out the newly created money.