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Depending on the situation, the Fed could take on government securities from banks so that the banks may extend more credit to private lendees (mostly companies
by dv_dt 6y ago
Depending on the situation, the Fed could take on government securities from banks so that the banks may extend more credit to private lendees (mostly companies) without running too low on required reserves. This balance sheet may not reflect what other agreements are attached to the treasury assets in holding.
- _eht 6y agoIn case you missed it, the Fed has removed almost all reserve requirements.