The answer is to sell bonds in open market operations.
Open market operations (OMO) means to the practice of buying and selling U.S. Treasury securities by the Federal Reserve (the Fed), along with other securities, on the open market in order to regulate the supply of money that is on reserve in the U.S. banks.
in other words, Open market operations are nothing but the trading of securities by the Fed to regulate the supply of money in the economy.
If the Fed's goal is expansionary, it buys Treasuries in order to pour cash into the banks. This means that the banks sell their bonds.
Which puts pressure on the banks to lend that money out to consumers and businesses.
Interest rates drift downwards as the banks compete for customers. Consumers are able to borrow more in order to buy more. Businesses are eager to borrow more to expand their businesses.
Hence, if the central bank wants to increase the quantity of money in the economy, it will sell bonds in open market operations.
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