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timofeeve [1]
3 years ago
12

How does the government and money work etc​

Social Studies
1 answer:
irakobra [83]3 years ago
5 0

Explanation:

The Fed creates money through open market operations, i.e. purchasing securities in the market using new money, or by creating bank reserves issued to commercial banks. Bank reserves are then multiplied through fractional reserve banking, where banks can lend a portion of the deposits they have on hand.

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