The Fed's<span> main tool for controlling the money supply and influencing interest rates is called open market operations: the sale and </span>purchase<span> of U.S. </span>government bonds<span> by the </span>Fed<span> in the open market. ... Because member </span>banks<span> receive cash from the sale of the </span>bonds<span>, they increase their </span>reserve<span> balances when they sell them.
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A government bond is a debt security issued by a government<span>to support </span>government spending. Federal government bonds in the United States include savings bonds, Treasury bonds<span> and Treasury inflation-protected securities<span>....
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Prior to class, skimming your notes from the last lecture and reviewing the summary section of your assigned preforms a pre-class warm up.
