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If the Federal Reserve wants to expand reserves in the banking system, it will:________

User Remeika
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Answer:

A) purchase government securities.

Step-by-step explanation:

By purchasing government securities, the Fed is engaging in an expansionary monetary policy that will increase the money supply. The Fed purchases government securities and gives money to the banks, increasing their reserves. This will expand the banking system's lending capacity, and their capacity to create money.

User Zesla
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