Final answer:
A public company receives a payment check from the Federal Reserve when it sells government bonds to them. The Federal Reserve has the ability to create the money for this transaction.
Step-by-step explanation:
When a public company sells government bonds to the Federal Reserve, the public company receives a payment check drawn by the Federal Reserve. The Federal Reserve is the central bank of the United States and has the power to create money. When the Federal Reserve purchases government bonds, it essentially creates money 'out of thin air' or with a few clicks on some computer keys to provide the funds for the transaction. The check that the public company receives will be deposited into its bank account at the Federal Reserve, thus increasing the company's bank reserves.